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Lord Andrew Adonis

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High Speed Rail: The UK needs another 1,000,000 Jobs

Posted: 27/07/11 10:18 BST

Today an economic report has been published that reaffirms what we have known all along. High-speed rail will deliver jobs and growth. The report, commissioned by Britain's leading cities, is supported by politicians and business leaders alike and states that 1,000,000 jobs rely on the support of the Governments investment in high-speed rail.

It's true: if the economy is to get working again it depends on better connectivity and a modern infrastructure. According to Volterra, the report's authors, high-speed rail will encourage GDP growth in the Core Cities by up to 3 per cent and see a local wage increase of between 1.06% and 2.7%. In total, 400,000 jobs could be created in Britain's core cities, with a knock on effect of many more in the areas they serve. The core cities are the economic engines outside London which keep this country's economy running. Such figures cannot be underestimated.

This report should also dispel the many economic myths the opponents of high-speed rail have recently churned out. Just last week opponents stated that HS2 will cost every income tax-payer £1,000 to construct. But recent research cited by Volterra shows high-speed rail will generate (per income tax payer) £800 of benefit for the economy per annum and £330 in revenue for the Exchequer per annum. This is quite a difference, and reiterates why we must look at all the facts and widen the debate.

Nothing is clear cut in the debate surrounding high-speed rail, but from its successes elsewhere we can be confident that it pays a great dividend to the society it serves. International examples prove that high-speed rail pays for itself. Our European neighbours in France have invested in their infrastructure early and are now reaping the rewards later. This is because wherever high-speed rail has been built between the major cities and economic centres of a country - as in HS2 - it has exceeded demand forecasts.

With more people on the train there will be fewer cars on our roads and fewer people queuing at our airports. As the report states high-speed rail will relieve capacity constraints on existing lines and transfer some 6 million trips from air and 9 million road trips. We will finally have a transport system that delivers what we all need - choice.

In the end it all comes down to the economy though. Efficiency, connectivity and productivity are all economic buzzwords that people have said high-speed rail will deliver. But at the heart of it what high-speed rail will deliver is growth and jobs. It will bring people closer to employers, businesses will be closer to each other, and major cities will be able to connect with each other to foster innovation in a whole new way.

It's an investment that will change our fortunes and provide the economic foundations for the future growth of this country. We risk being left behind if this does not get built.

 
 
 
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HUFFPOST SUPER USER
Roy Fowler
I try....I really do!
09:49 AM on 07/31/2011
I am all for investment in infastruture projects, good for us, good for business and good for jobs. But sadly, train travel is out of league for "one off" trips. For instance, why would I pay £122 EACH for 2 returns (cheapest time and rate) to go to visit my family in Carlisle when the ticket does not guarantee me seat or that there will be over 100 people standing all throught the cramped train?

When i can drive for £72 return with 4 people if i wish?

The train compaines grab £2 BILLION a year in subsides from me ( and ALL taxpayers), then charge us the highest ticket prices in Europe, least clean and least perfoming and all commuters the daily task of standing in noisy, cramped and dangerously overcrowded trains every day.
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MamaJoe
Age is a high price to pay for maturity.
10:51 PM on 07/28/2011
Just a small query, as we have no manufacturing base since AM (after Maggie) and as the Bombardier
works in Derby, employing 3,000 people, is the last significant railway workshop on British soil and is about to be closed by our own government after them giving the lucrative contract to Germany. Seems a little silly to ask I know, but where are all the skilled workers and manufacturing companies going to come from?
04:25 PM on 07/28/2011
The public needs an independent detailed report proving 100% that there will be another million jobs created by HS2 as government are reckless spinners with zero understanding of finance economics and risks as they have conclusively proved on earlier projects like the Arena, the Olympic,s NHS -IT etc. Politicians are not required to exhibit corporate government as public money is there for the wasting rather than having to earned by skilled effort and conserved.
Reports by government are required to come up with the answers politicians want. Ibnddependt reports have not been positive see http://www.andrealeadsom.com/home/iea-launches-new-report-on-hs2/292 and http://www.countryside-alliance.org.uk/ca/communities/damaging-report-on-hs2-shows-opponents-cant-be-dismissed-as-nimbys and http://www.uxbridgegazette.co.uk/west-london-news/high-speed-rail/2011/06/22/parliamentary-report-picks-holes-in-hs2-business-case-113046-28926060/ http://www.independent.co.uk/news/uk/politics/uncertainty-on-new-rail-benefits-2300468.html
12:21 PM on 07/28/2011
I don't even understand why some people are against it. Time and time again we encounter this astonishing short-termism from some of our think tanks and politicians.This is a long term fix to unemployment and business stimulus.
lastpost
see biography
07:07 AM on 07/28/2011
"High Speed Rail"
Or, how to undemocratically railroad the population into something they didn't mandate.

"The UK needs another 1,000,000 Jobs"
Easily achieved. Simply by removing one or two specific individuals from their jobs.

"an economic report has been published that reaffirms what we have known all along"
That agenda in, equals agenda out.

"It's true"
illusion?

"if the economy is to get working again it depends on"
building a better black hole to pour funds into. Rather than investing in renewable energy schemes, that have perpetual payback potential.

"Such figures cannot be underestimated"
Only overestimated.

"economic myths"
Best beloved. Hear the tale of a government venture that came in under budget.

"This is quite a difference"
Like that between weather forecasts, and what we actually get.

"Nothing is clear cut"
except the speciousness of speculative claims.

 "International examples prove"
if anything, that foreign leaders are better.

"We will finally have a transport system that"
goes from A to Z, effectively bypassing all points in-between.

"whole new way"
GOTP,BTP,FTP. In a democracy, rather than a republic.

"It's an investment that"
appears to be all things, to all those who don’t ask awkward questions.
02:21 AM on 07/28/2011
There's absolutely no question that this would be a good move. The benefit for infrastructure, jobs, and general convenience is once that's very hard to ignore.

However, the main question is the big if. Only if it'll get built will we be able to see all this. Considering that the Tories' main focus has been, and is likely to remain, the debt, I'm not holding my breath.
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06:29 PM on 07/27/2011
And how does a monopoly on train fares (have you seen the price of Virgin's Manchester to London?) contribute to viability at the personal level?

Even at today's cost car travel is cheaper than rail. And I prefer the train to the car.
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HUFFPOST SUPER USER
mediumal57
Moderate Extremist
05:45 PM on 07/27/2011
Totally in support of developing the high-speed rail link. It'll create thousands, if not tens of thousands of new jobs, I will tie London to the rest of the UK economy much more closely, making us all better off in the long run. Big capital projects like this are necessary I'm afraid.

One more I think ought to be seriously considered, because there is a pressing need for it, is the building of a National Grid for water distribution so that drought is no longer going to be any problem in these Islands. We get more than enough rainfall on average. We are just so incredibly wasteful with it.

That is where I partly agree with the environmentalists by the way. But their solutions seem to be a tad defeatist and utopian at times. What we need is not less development, but better more intelligent development. Unfortunately such matters are not best left in the hands of Private Enterprise. All the advocates of this approach are concerned with is profit and maintaining shareholder dividends in the short term. And we have seen what such a philosophy has meant for our energy supply industry. Again a lot of fragmentation and waste.

The high speed rail project should be fully tax-payer funded and built asap.
04:10 PM on 07/27/2011
Will they run on time?
11:52 AM on 07/27/2011
HSR travel to boost jobs and economy is a pretty flawed idea unless they restructure the costs associated with rail travel, presently I can fly from Newcastle to Luton for thirty quid transfer to London for a tenner or so, try going Newcastle-London on the train, costs are obscene.
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HUFFPOST SUPER USER
NJP1
10:31 AM on 07/27/2011
In 1769 Trevithick invented the steam engine, and humanity hit the jackpot! We spent the next 250 years getting hold of cheap coal oil and gas, setting fire to it and deluding ourselves that we all had jobs. As long as we kept burning fuel, we could have more ‘jobs’. That’s what a job is, using one form of energy to transpose into another form, and that’s what ‘growth’ is, the increasing use of primary energy to support our infrastructure. So if we want a million jobs, we’re going to have to find the primary energy sources to support them. Creating employment without primary energy means paying wages out of taxation and eventual bankruptcy. The rest of the world wants hundreds of millions of jobs too, which is why there’s already intense competition for those energy sources and why it’s rising in price. All that we call ‘civilisation’ was built on fossil fuels, we have locked ourselves into an oil burning economy that’s running out of oil. Forget renewables, that’s just political spin to hide the reality of our situation. You can’t make a tractor tyre from a windfarm or run a 40 ton food truck on batteries. http://www.yourmedievalfuture.com/
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HUFFPOST SUPER USER
mediumal57
Moderate Extremist
05:29 PM on 07/27/2011
So we must finally accept that we can no longer attempt any progress (I use the word here minus any prejorative connotation you might think I mean by it by the way - I only mean moving on) and settle for possible falling living standards and mass unemployment? Are you advocating that we reverse the Industrial Revolution in fact, and wish us all go back to living in small self contained largely rural communities with little or no communication between them going on.

More energy hits the Earth from our local star than we could possibly ever use. I suggest we start seriously trying to harness it. Fossil fuels are running out and cars, trains and possibly planes powered by electrical energy are the future.

Humanity and civilisations at various stages have faced energy crises before and finally overcome them. I have faith we can do it again. We mustn't allow ourselves to become discouraged. That way lies death and decay and no future.
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HUFFPOST SUPER USER
NJP1
12:07 AM on 07/28/2011
No previous civilisation has overcome its energy crisis other than by looting someone else’s energy source. Always through conflict. I can’t think of any exception to that. Prior to the advent of fossil fuel use, that invariably meant slave labour.. Employment in our context means the conversion of one form of energy into another, that’s all ‘employment’ is I’m afraid. Give a job any fancy name you like, but it doesn’t change anything. I wish I could share your faith in electrical energy, but I fear it must join the waiting list with the mythical ‘they’ who must ‘do’ something. Our population numbers went up in lockstep with the industrial revolution, and fossil fuel use, I fear it cannot be sustained.
11:24 AM on 07/28/2011
Yeah, electricity will be our savior, not from wind farms though unless we want one each at the bottom of the garden, the other ways are equally flawed, burning fossil fuels which the greenies dont like as its been drummed into them this will spell disaster unless they build an Ark, then we have nuclear, which eventually will poison every area which has a plant. Try thinking of other ways next time you hug a tree mate, this one, "settle for possible falling living standards and mass unemployme­nt" has already happened or do you not realize we make nothing anymore and our economy is based on non-jobs, arms and banking, not looking too good for Great Britains future is it, however we can all be saved by investing in Israel, apparently they need all the wealth this planet provides and are unhappy they only control 99% of it now.
10:20 AM on 07/27/2011
We need to think again about the design of these modes of transport.

1. Cut-and-cover tunnels. new rail systems should not consume land, nor be open to vandalism. Safely enclosed in cut-and-cover tunnels is best.

2. Tunnel-travelling trains do not need windows. This allows strengthening of carriages and increasing of sizes.
3. Present rail gauge is too narrow. Should be much wider so that trains can be wide-bodied.
4. Trains should be double-deck to increase capacity.

Please consider designing to similar specifications as above, instead of 19th Century specifications currently on the table.

Thanks.
03:49 PM on 07/28/2011
I don't agree.

A 3 hour train trip without windows is one of the most boring things. I agree with tunnels inside the cities and until the train leaves big cities (where most vandalism occurs), but a tunnel from end to end would be expensive enough to stop thinking about it. Wider bodies would be a problem in trains, as a plane doesn't need infrastructure to fly but a train needs infrastructure and wider body would be much more complex to design as the airflow should be studied and rails should be redesigned, there is also the weight. I agree with the double floor, but again the airflow and stabilization would be a problem as it's not the same to go at 150-160Km/h than at 300-350 Km/h