New ideas on high-speed link funding

Sep 17 2009 By Adrian Pearson, The Journal

RAIL experts have called on the Government to build a high-speed line to the North East - but only after first creating a North West line built and paid for with new road and airport charges.

Transport think tank Greengauge 21 has released its vision of high speed trains running up both sides of the country, and across the Pennines, as part of a £69bn plan to reduce connect times to the capital.

Engineers and transport experts who carried out the study predict the North East alone could see a £2.2bn boost to its economy over 60 years, with more than £18bn coming to entire North if a Newcastle-Manchester route is built.

Last night it was claimed the region could end up paying for a North West line without seeing the benefits if the Government staggers the railway project.

The think tank has suggested new taxes on motorists and airport users, as well as increased business rates, could in some way offset the cost of building the new lines.

Development agency One North East, the Association of North East Councils and Newcastle Council have all handed over thousands of pounds towards the study in a bid to persuade all three main political parties to include high speed promises in their next manifestoes.

A line to Newcastle would reduce journey times from London to around one hour and 45 minutes. But yesterday’s Greengauge 21 report prioritised a high-speed line to the North West.

Last night Mick Henry, leader of the Association of North East Councils, welcomed the report’s general backing for high speed trains in the region.

But he added: "A phased approach to high speed will undoubtedly give an early economic advantage to those areas connected first, which reinforces the need for the North East to press its case to High Speed Two and to Government to be linked into a high-speed network at the earliest opportunity.

"It is also critical that we continue to invest in the East Coast Main Line in advance of, and alongside, the building of a high-speed network in order to meet the growth in passenger demand in the near future".

And business leaders have warned the report in its current form could have a devastating impact on cities along the East coast.

James Ramsbotham, chief executive at the North East Chamber of Commerce, said: "A phased approach to building such a rail network would suck investment to those areas that will be connected first.

"The potential impact on other regional economies not linked in quickly would be extremely damaging. In addition, choosing to route the first phase up the West Coast would skew investment away from Europe and the ports that are closest to it."

He added: "Greengauge’s approach to funding high speed rail is highly unsatisfactory. Putting additional taxation on other modes of transport and levying against businesses is a destructive way to build a network that is supposed to be there to encourage economic growth.

"For the North East, the ‘pay now, wait for benefits later’ approach is grossly unpalatable. Businesses will take a lot of convincing that it is worth the wait."

Newcastle International Airport’s head of planning and corporate affairs Graeme Mason also warned of the risks caused by the think tank’s funding suggestions.

He said: "Regions such as ours need a mix of good rail and air services. We see high-speed rail adding to this mix – so if it ever happens, it would be good for the region.

"The suggestion that taxes on air fares should be further increased to pay for this is dangerous and should be rejected. All this would do is damage regional airports, reduce connectivity and wipe out the economic benefits of having high-speed rail in the first place."