Orders of the Day — Channel Tunnel Bill

Part of the debate – in the House of Commons am 12:00 am ar 5 Rhagfyr 1973.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Mr Keith Speed Mr Keith Speed , Meriden 12:00, 5 Rhagfyr 1973

I beg to move. That the Bill be now read a Second time.

The House has debated the Channel tunnel on a number of occasions in recent weeks and months, but since we last discussed it, during the passage of what is now the Channel Tunnel (Initial Finance) Act, there have been major developments. Agreement No. 2 and the Anglo-French treaty have been signed and published, the main contracts for the initial works have been let, and phase 2 is under way.

The Bill now before the House will provide the powers needed to enable the project to go forward in Britain on the lines agreed. With the treaty and Agreement No. 2 it puts flesh on the bones of the proposals set out in the White Paper, and provides for the construction and operation of the tunnel system.

I have no wish to go over again in detail the ground covered in our previous debates. Our reasons for believing that it would be right to go ahead with the project were set out in the White Paper and have already been expounded at length from these benches on a number of occasions. Briefly, the project is technically feasible within known technology; it will be financially viable, indeed profitable; it will enable us to provide for our growing cross-Channel traffic both more efficiently and more cheaply than by relying solely on the development of sea and air services; it will provide major opportunities for British Railways to develop through long-haul services, for both passengers and freight, from many points in this country to main centres on the Continent. This will ensure that the project is on balance helpful to our regional policy and certainly less damaging to the environment of Kent and the country as a whole than the alternative ways of providing for the traffic.

I am glad to learn that the right hon. Member for Grimsby (Mr. Crosland) now accepts that a rail-only tunnel without provision for vehicle ferry trains would not make sense. I am sorry that the right hon. Gentleman is absent through sickness today. We all wish him a very speedy recovery from his illness. I think he will now carry many of his right hon. and hon. Friends with him in this further step down the road to Damascus. I should like to make it clear that, although we reject a rail-only tunnel, any practical suggestions for how we can do more to encourage the maximum commercial development of the through rail services to which both the Government and British Railways are deeply committed would be welcome.

I must say something about the present energy situation. The deliberate policies by the oil supplying countries which may limit supplies and increase prices in advance of the longer-term problems of resource shortages may have two implications for the Channel Tunnel, if sustained over the next few years. Firstly, they may change the balance between the advantages of road and rail—and rail and air—in general. This should have little effect overall on the profitability of the tunnel, which would get more net revenue from through traffic if less than forecast from the ferry service, but any reduction in the ferry traffic flows below the estimates might call for some review of the scale of initial investment in ferry rolling stock and platform construction at the terminals.

Secondly, any change in the average rate of economic development throughout Europe over the next seven years would affect the growth of cross-Channel traffic of all kinds.

These are complex questions, depending on new uncertainties which have arisen in very recent days, and, of course, when the tunnel is open we shall have the major benefit of our own oil from our coasts. All these problems will be examined further during phase 2, in the light of developments. But the general position is clear—the prospect of oil supply difficulties increases the need for the tunnel.

Against this general background, the Bill makes provision for the powers needed to implement the proposals outlined in the White Paper and set out in the treaty and the agreements. It should be read and considered in the light of them. Some of the vital provisions, for instance that of the 50-50 sharing of obligations and profits between the two Governments, are implicit, not explicit, in the Bill, which could not bind a foreign Government. The Bill is, however, not restricted to the terms of the arrangements so far made, and is in form rather wider in certain respects.

Perhaps I may now try to lead the House through the rather complex maze of the Bill, avoiding, I hope, any potholes and landmines on the way.

Part I, together with Schedules 1, 2 and 3, provides the land and works powers needed for the construction of the tunnel. This covers not only the permanent works but certain essential ancillary works and temporary working sites, such as the sidings in the area of Dollands Moor refuse tip needed to make it possible to move all the main tunnel spoil by rail for disposal on the terminal site. Those directly affected can, of course, petition, and their interests will be subject to detailed examination before the Select Committee, but there are a number of general points to which I would like to draw attention.

The powers to construct the tunnel system are, under Clause 1, conferred on "nominated constructors". As subsection (2) makes clear, these are, in the first place, the British and French Channel Tunnel companies with whom the two Governments have entered into Agreement No. 2. But the definition does leave open the possibility that some other persons might be nominated to carry on the project, for instance if the companies abandoned it. I shall refer to this possibility later in connection with Clauses 33 and 34.

The provision in Clause 2 for vesting in the Secretary of State the tunnel under the sea up to the frontier should be read with Clause 24 which provides for its incorporation in the United Kingdom and the definition of the frontier. Clause 3 provides for the acquisition of the land needed for the construction of the tunnel. This is one of the places where the Bill cannot be fully understood without reference to the agreements. The intention is that my right hon. and learned Friend should acquire the land needed for the project. He will make it available to the nominated constructors, who will reimburse him fully under paragraph 8.2.3 of Agreement No. 2, and will when the tunnel is completed pass it on to the British board under Clause 13. The nominated constructors will have no powers of compulsory acquisition, nor will land so acquired ever pass into their ownership, as opposed to use.

Most of the supplementary provisions in Clauses 3 and 4 and Schedule 2 are in standard form, but I would draw attention particularly to subsections (5) and (6) of Clause 4. These make it plain that those adversely affected by disturbance from the works can turn to the Secretary of State for compensation under the Land Compensation Act 1973, and specifically apply to these works the provision of Section 26 of the Act. This will give us power to buy properties the enjoyment of which is seriously affected by the works even if none of the land is actually required for them.

I know that my hon. Friend the Member for Croydon, South (Sir R. Thompson) and other hon. Members are worried about the position of the rail link. I should add that the Bill does not cover the rail link, for which British Railways will introduce a Bill next Session, but I confirm that the Land Compensation Act will naturally apply to that, too.

Lastly, in this part of the Bill, Clause 5 deals with planning permission. Under Class XII of the General Development Order deemed planning permission is conferred on works authorised under a local Act. That provision would not bite on this Bill, but it is clearly right that works specifically authorised by Parliament should be allowed to go ahead. Clause 5 therefore makes provision for deemed planning permission for the works. It is, however, clear that the local planning authorities have a very real interest in the layout of the terminal area—the landscaping, parking areas, design of the terminal areas, and so on. So provision is made in subsection (3) for the local planning authorities' approval of the detailed plans and specifications.

Part II of the Bill provides the powers to implement the financial arrangements now agreed. The general principles were established by the previous administration following the accord reached with the French Government in 1966. The arrangements themselves are summarised in Chapter 11 of the White Paper and set out in the agreements and treaty in great detail.