§ 2.40 p.m.
§ LORD KENNETMy Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government what assumptions have been made about the price of oil in costing the third London Airport and the Channel Tunnel.
§ THE PARLIAMENTARY UNDERSECRETARY OF STATE, DEPARTMENT OF THE ENVIRONMENT (BARONESS YOUNG)My Lords, the basic studies for the Channel Tunnel and Maplin assumed that the price of oil would rise broadly in line with other prices. On the Tunnel there will be an opportunity to take account of developments since the basic studies before the stage of final commitment is reached. The effect of recent developments will be among the factors considered in the report to Parliament required by Section 2 of the Maplin Development Act.
§ LORD KENNETMy Lords, could the Minister say whether it still looks as though it makes anything like economic sense now that oil, to put it mildly, has not risen in accordance with other prices?
§ BARONESS YOUNGMy Lords, I can only ask the noble Lord to await the result of that report on Maplin and of the further studies on the Tunnel.
§ LORD CORNWALLISMy Lords, may I ask my noble friend whether it is not only oil that is probably going to increase in price in connection with the construction of the Channel Tunnel? Is the noble Baroness aware that we in Kent are very worried about the cost of a great many other things? I should also like to ask the noble Baroness, if she is going into matters connected with the extra expense of the Channel Tunnel, whether she is aware that it will probably cost very much in excess of the present estimate. Is the noble Baroness further aware that we in Kent would like to know what the cost of the alteration of all the bridges, the railways, the roads and everything else will be?—because we realise that there is going to be a considerable amount of destruction in our 1281 county, at very considerable cost to the taxpayer.
§ BARONESS YOUNGMy Lords, the financing of the Channel Tunnel is the responsibility of the companies, and the Government are providing only the guarantees up to 90 per cent. of the total capital cost. Construction of the associated rail link to London, which will entail public expenditure, will not begin until 1976. There will, however, be an opportunity for this House to consider the whole matter when we come to consider the main Bill on the Channel Tunnel.
§ LORD CORNWALLISMy Lords, may I ask that we shall be told something about it? At present the secrecy is so appalling that those most affected know nothing about it.
§ BARONESS YOUNGMy Lords, I cannot accept that statement by my noble friend. As I have said, he will have an opportunity to raise all these points on the Second Reading of the Bill when it comes to your Lordships' House.
§ LORD BLYTONMy Lords, does not the noble Baroness consider that, in the light of the serious financial and economic situation of this country, that these two objects ought now to be scrapped?
§ BARONESS YOUNGNo, my Lords.
§ LORD AVEBURYMy Lords, in considering whether the Channel Tunnel should be for accompanied motor cars or rail-only link, does the noble Baroness agree that the only figures that we have to go on are those compiled some time ago, well before the emergency, by the Road Research Laboratory, and that no independent studies have been made by the Society of Motor Manufacturers and Traders or British Leyland or any of the other car manufacturers into the future ownership and usage of motor cars? Would she therefore initiate studies into this matter as a question of urgency so that not only decisions on the Channel Tunnel, but on motorways and other ex- 1282 penditure associated with motor cars, can be reviewed?
§ BARONESS YOUNGMy Lords, this is a matter that I shall note. There will be opportunities to take into account other developments that may arise before the signing of the supplementary agreement No. 3 which is planned for mid-1975.
§ LORD ROYLEMy Lords, will the noble Baroness say whether there will be any difference on the price of oil reaching this country if the Suez Canal is opened?
§ BARONESS YOUNGMy Lords, this is rather wide of the original Question.
§ LORD DAVIES OF LEEKMy Lords, can the noble Baroness say when the Government are going to abandon their intellectual dandyism and concentrate on getting more miners in the pits and encouraging the output of coal rather than boring a hole between here and France for another half century?
§ LORD HANKEYMy Lords, will the Government give further consideration to the effect of the price of oil on these projects? Will they also give consideration to the enormous increase of trade which is taking place between the United Kingdom and Europe—I believe it went up 37 per cent. last year—and the inevitable effect this will have on traffic and communications with the Continent? I presume that the Government will agree that we should not be left behind in the requirements of meeting these communication needs.
§ BARONESS YOUNGMy Lords, we shall certainly take note of this point.
§ LORD SEGALMy Lords, is the noble Baroness aware that last week the Channel crossing from Dieppe to Newhaven took 7½ hours, instead of the usual 3½ hours, and that the badly buffeted passengers on board were very relieved to reach dry land? Could not this awful experience be avoided once the Channel Tunnel is completed?