My Lords, I start by emphasising the benefits of a new railway to the Midlands and the north of England. Both the noble Lord and the noble Baroness referred to the capacity of the West Coast Main Line, and it is not in contention that new capacity needs to be built. Connectivity drives growth, jobs and housing, and the skyline of Birmingham is testimony to Birmingham’s expectations of a faster link to London. Indeed, the Government have put significant money into connectivity for the sports quarter, which, clearly, would not be being proposed were it not for HS2 serving Birmingham in the future. The development opportunities at Old Oak Common are already being realised, as will those at Euston. The benefits of greater connectivity are there to see and are really important for our country and its economic future.
We can also do some big projects. The trans-Pennine route upgrade is a £14 billion project to an existing railway and is on time and budget. But it is true, as both the noble Lord and the noble Baroness said, that HS2 has gone badly wrong, and it falls to this Government to sort it out, because we cannot carry on like this. Currently, we can predict neither when it will open nor how much it will cost. That is a pretty terrible position to be in and it has to be said the consequences are as a result of actions taken by previous Governments.
I welcome the fact that both the noble Lord and the noble Baroness welcomed the appointment of Mark Wild as chief executive and Mike Brown as chair of HS2. I have every confidence that both those people will begin to put this right and fundamentally restructure the company and the approach to the project through a very detailed review of where it is now—because, unless you know where it is now, you will not be able to find out where it is going in the future.
It must be the case that the criticisms of the governance model are justified. Indeed, James Stewart’s report sets out a whole a whole raft of recommendations that the Government have fully accepted. My own department clearly shoulders some culpability. The noble Lord asked what has happened in the department and, although I do not think it is not right to delve into senior personnel, he will, of course, note that a new Permanent Secretary is about to be appointed, the previous incumbent having retired.
We need a new model, but one in which the chair and board of HS2 take a far greater responsibility for the things they should be responsible for. The noble Baroness referred to Crossrail, where it was quite clear that the chair and board were not acting in the interests of the company. I say to the noble Lord, Lord Moylan, that I regard him as the best board member of Crossrail during his time as a non-executive director, because he diligently looked at the progress of the project. Indeed, the then chair of the project complained furiously, to me and others, about the noble Lord’s diligence in inspecting the real state of the project. That was as it should be and it is a shame that HS2’s boards do not seem to have done the same. It is right to have a new chair, and I have no doubt that in due course we will have a new or different board as well.
I will not go through the Stewart report. It contains a raft of recommendations, as I said, all of which the Government have accepted. It is also quite clear that, if you are going to put out big construction contracts, you should have a sponsor capability that is capable of understanding what the contractors are doing as they do it and of measuring how much is done and how much it has cost as it is happening. Mark Wild has found that HS2 itself is fundamentally unable to achieve that in its present state and will therefore change it.
What is in front of us in Mark Wild’s letter to the Secretary of State and the Stewart report is extraordinarily unhappy. Clearly, a number of really bad decisions have been taken. I helped Doug Oakervee with his review in 2020, and his strong recommendation was that the then construction contracts should not have been left in their current form because they had insufficient detail and there was insufficient design and encouragement to the contractors to perform properly and to budget. We can see the result of that here.
I will not go through the Secretary of State’s Statement in detail—because it is already in the public domain—nor the letter or the report. To answer the noble Lord’s question about Euston station, it is clear that Euston station is no longer to be delivered as part of HS2. That cannot be a great surprise because, as the Secretary of State remarked in the other place, faced with a first design that cost a huge amount more than the budget, when HS2 looked at it again, it came back with a design that cost even more—and that is without the air-conditioned platforms that were originally part of the design and were an eye-wateringly unnecessarily feature, since they do not exist even in railways in Saudi Arabia, where you would probably think they might like that sort of thing.
So, it is right for Euston to be dealt with separately. The reason the noble Lord is not aware of a separate company is that the Government have not yet got to that stage. It has taken a long and painful process to get to a stage at which all the parties involved in Euston now agree with the spatial plan, including the developer Lendlease and its new partner, the Crown Estate. The Government are now considering how best to procure that station, which includes an HS2 station and the concourse of the Network Rail station as a combined station, which it always should have been but, certainly when I started chairing the partnership board at Euston, was not. In fact, the original intention was to have two platforms numbered “1” because the HS2 people thought they were building a new railway in a separate station. How stupid was that?
So, we are progressing with Euston as a separate project to be delivered by a separate organisation. There will be more to say in short order, both here and in the other place, but the noble Lord has not missed anything. The state in which even that part of the project was left, after the peremptory cancellation of phase 2a and the statement by the previous Prime Minister that Euston should be built with no public funding, was one where it needed serious work to come to a conclusion. But I do not agree with the noble Lord that we should somehow further alter the design of Euston. We should get on with a plan that works in order to open this railway at the earliest possible time that Mark Wild can predict, at a cost he can predict, and with a delivery plan that will work.