Mineral Products Association chief executive Nigel Jackson has urged the UK government to press ahead with the massive HS2 rail project.
The scheme will connect London, the Midlands and northern England and cut travel times using trains that can travel at up to 250mph. Transport Secretary Grant Shapps has asked for more data before making a final decision. Some estimates now put the total cost of HS2 at £112bn, compared to the figure of £56bn given in 2015.
Jackson commented: “The Mineral Products Industry has long called for Government to focus on improving and accelerating delivery of major infrastructure projects in line with stated timescales. Over recent years and over many different projects, we have seen expected infrastructure projects fail to deliver on time, if at all.”
Former HS2 chairman Doug Oakervee has led a yet-to-be published review into the scheme. In details leaked to the Financial Times the review recommends that the government goes ahead with the project, even though it concedes it is difficult to quantify exactly what economic benefits will result.
“The Oakervee Report’s support for continuing with HS2 is welcome, but the continued uncertainty and caveats mean our members are still unsure if they should expect their order books to see any impact,” said Jackson.
“Major projects do not exist solely to benefit the supply chain, but after years of Government announcements we at least hoped to be in a position to plan with some confidence.
“Unfortunately, we still can’t. It is hard to retain shareholder confidence when ‘normal’ business uncertainty is compounded by such indecision and delay. Budget forecasts which had already slipped now have to be torn up, and forward investment in new and improved plant capacity written off over less business.”
Jackson added that UK “desperately needs” to renew and upgrade its transport and energy infrastructure. He said that MPA members stand ready to supply the materials for these projects, but that experience has led them to be sceptical of big announcements translating into orders in their books or work on the ground.
“We call on the Prime Minister to make a firm and early decision on HS2 and give our industry more confidence to invest and in turn boost growth,” he said.
