Chamber dismisses HS2 grand folly claim
Business leaders in the West Midlands have again jumped to the defence of the controversial planned high-speed rail line after it was branded a 'grand folly'.
Birmingham Chamber of Commerce Group has criticised the Institute of Directors after its members said the Government should consider spending the £42.6 billion that HS2 will cost on other projects.
The IoD called the line, which will cut a swathe through Staffordshire, a 'grand folly'.
But the Birmingham chamber has warned that the new line is essential to provide more capacity on the overcrowded rail network.
Jerry Blackett, chief executive of Birmingham Chamber of Commerce Group (BCCG), said: "We believe that the really 'grand folly' would be to believe that it is possible to squeeze meaningful amounts of capacity out of the existing rail network. Network Rail has made it very clear that this is not physically possible.
"And here at the BCCG we have the local knowledge that understands the overwhelming economic benefits that HS2 would bring by spreading wealth throughout the country."
The group warned that small bits of work on the existing rail lines would cause major disruption for passengers and would not deliver the extra carriages that HS2 promises.
It has also dismissed as 'nonsense' claims from the influential thinktank the Institute of Economic Affairs that the cost of HS2 could reach as much as £80bn.
Mr Blackett said that the IoD's stance was disappointing and added: "Richard Threfall, the head of infrastructure at KPMG, who produced a report in 2010 on the benefits of HS2, says that their work showed that a high-speed rail network in the UK could boost annual economic output in 2040 by between £17bn and £29bn, recovering the currently anticipated £50bn cost within just a couple of years.
"And last year 64 per cent of respondents to the CBI-KPMG Infrastructure survey considered HS2 would have a positive impact on business. HS2 offers a transformational impact on the UK's economy and its future competitiveness. If we fail to invest the UK will be on a downward spiral to a second tier economy."
The IoD surveyed 1,323 members online between August 1 and 11. It found just 27 per cent felt HS2 represented good value for money and that 70 per cent said it would have no impact on the productivity of their business.
In August 2011 a survey of IoD members found 54 per cent rated HS2 important to their business. This figure has now fallen to 41 per cent, with the IoD saying that this illustrated 'how businesses see high-speed rail as a lower priority than it was two years ago'.
