Yorkshire warned it could lose out unless it backs HS2

YORKSHIRE will lose out on the economic benefits of HS2 unless the region gets fully behind the controversial project, it was claimed today.
Panellists (left to right) Stuart Green, Roger Marsh and Paul Chapman at the launch of the HS2 Yorkshire Business Survey in Leeds todayPanellists (left to right) Stuart Green, Roger Marsh and Paul Chapman at the launch of the HS2 Yorkshire Business Survey in Leeds today
Panellists (left to right) Stuart Green, Roger Marsh and Paul Chapman at the launch of the HS2 Yorkshire Business Survey in Leeds today

The warning comes after new research revealed that 62 per cent of small and medium-sized business believe that the region does not need the high-speed rail project.

The research for law firm Nabarro and the Yorkshire Post was launched at an event in Leeds this morning attended by business leaders.

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Paul Chapman, interim director of communications at HS2, told the audience: “My biggest concern is how do we make sure Yorkshire does not miss out?”

The new HS2 chairman Sir David Higgins met with leaders of the core cities, the LEP chairs and shire county leaders on Friday. “They are heavily engaged in the debate,” said Mr Chapman.

“Yes, HS2 needs to work hard to make the case. Yes, we need to do more. But if I go to Birmingham or Manchester, the chambers of commerce are solidly behind this.”

He compared the UK to a business organisation. “The South East is piece of the country that is overperforming,” said Mr Chapman. “The rest of the country is in a loss-making situation. You can’t sell it. You can’t close it. You have got to invest in it.

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“That underpins why the Government is moving forward with this investment programme.”

Mr Marsh said HS2 offers a huge opportunity to reindustrialise the UK in key sectors.

Gerald Jennings, portfolio director at Land Securities, said fears that talent and investment will be sucked into London suggest that the region lacks the confidence and ambition to take advantage of infrastructure improvement.

He said if ministers believe that Yorkshire is not in favour they could decide that HS2 will just go to the north west and scrap the line to Yorkshire.

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“Competition does not sleep. We have to maintain our competitive advantage and HS2 is part of our competitive advantage,” he added.

Roger Marsh, chairman of the Leeds City Region Local Enterprise Partnership, said there is a danger that the Government will make a virture of the west to the detriment of Yorkshire, with greater infrastructure investment in Birmingham and Manchester.

He warned that the project to rebalance the UK economy from south to north could led to a polarisation of east to west.

Others were more sceptical, reflecting the findings of the research, which is based on 177 respondents, largely Yorkshire SMEs.

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Stuart Green, a retired Sheffield steel stockholder, said HS2 brings nothing but faster travel to London and the capital will “suck in all the investment that’s going”.

He pointed out the Yorkshire Post has published more than 70 letters against the project since October and only 16 in favour.

Andrew Mason, a Bradford property developer, said reports from the RAC Foundation, Public Accounts Committee, Institute of Economic Affairs and National Audit Office have all found the HS2 proposals to be deeply flawed and lack evidential support.

Andrew Bosmans, a Labour councillor at Doncaster council, questioned Government claims over job creation from HS2 and said France and Spain, both of which have invested heavily in high-speed rail, are struggling with high levels of unemployment.

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Howard Kew, finance director at the Medical Protection Society and the former head of the Financial Leeds lobby group, took a different view and said the UK needs a strategic plan for national transport infrastructure, which explains how HS2 fits into the bigger picture.

Mr Chapman said cross-party political support is vital for HS2 and agreed that the project needs to be part of a larger strategy.

He said there is an emerging consensus between Lord Deighton, Commercial Secretary to the Treasury, Sir John Armitt, author of a Labour report on long-term planing, and Sir David Higgins, chairman of HS2, that there is a need for a national infrastructure plan.

Vincent Middleton, chairman of Rotherham-based Newburgh Engineering, said the UK needs to get moving with big infrastructure projects in transport and nuclear rather than waste time and money on debating issues, which only benefits lawyers and consultants.

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He said the Government’s procurement strategy was “naive” and should be more supportive of the UK supply chain.

Instead of focusing on construction jobs, he said the Government should try to create a legacy through its investment in HS2 to support world-class engineering in Britain and help UK exporters sell rail products to international markets for the next century.

@bernardginns

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