From his column in today's Daily Mail:
The campaign to stop HS2 has my full support. To spend £17bn (for starters) on taking a few minutes off the rail journey between London and Birmingham is outrageous. We don’t have the money and even if we did, it wouldn’t be good value.
Still, how the property spivs who fund the Tory Party must be rubbing their hands at the thought of the rise in price of otherwise cheap and cheerful land in the Midlands and the North. Thanks, Dave!
From The Council That Brought Us 'The Empty Box'...
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14 comments:
You never know, a lot of people are attracted to classic "Adam Smith" capitalism.
AC1
Bang on the money.
I hope it gets cancelled.
And there's only one thing worse than the DM. That's the Express with it's obviously property portfolio-d editor and it's unashamed hyping of the housing market.
I've got a few articles from last year and 2007 that show that Heffer is pretty homeownerist. His dig here is at the change government's attitude to house building, and presumably that his house might face price damage.
AC1, not Heffer.
EK, I thought you opposed HS2 because it was a waste of money, not because of impact on land values (positive or negative)?
JT, Heff is full on Home-Owner-Ist. He probably thinks it's an outrage that a couple of hundred of these vast show off houses along the route will fall in value and the thought that some grubby Northerners might make a windfall gain sets his teeth on edge.
Nonetheless, he has conceded that land values are dictated entirely by what 'everybody else' does and owe nothing to the landowner's efforts (or otherwise).
"Still, how the property spivs who fund the Tory Party must be rubbing their hands at the thought of the rise in price of otherwise cheap and cheerful land in the Midlands and the North. Thanks, Dave!"
That makes sense. Not only is HS2 a vanity project to have a faster train than the Germans, it's an opportunity for Dave's mates to make loadsamoney. All they needed was to be tipped the wink that HS2 was on the cards before everyone else was informed and they could buy up cheap land in Brum and other places to the north and sell it for a profit once HS2 was announced. Subsequent to the announcement, they could then buy up "blighted" property at a discount and then cash in when the whole ridiculous scheme is cancelled as an "austerity" measure. Ker-ching!
B, do you think that Heff is saying that making capital gains by selling land at a profit as a result of what 'everybody else' does is immoral?
Does that apply to everybody - including those poor wannabe landed gentry types along the route, whose capital gains over the past couple of decades must have been colossal - or just particular hate groups?
it's an opportunity for Dave's mates to make loadsamoney. All they needed was to be tipped the wink that HS2 was on the cards before everyone else was informed and they could buy up cheap land
Well, did they?
All they needed was to be tipped the wink that HS2 was on the cards before everyone else was informed
The route for HS2 south of Birmingham was published by HS2 Ltd under Labour, more than two years ago. The route for HS2 north of Birmingham still hasn't been decided (and the scheme north of Birmingham still hasn't been approved). So the suggestion that DC tipped the wink, or that there was insideryness going on, doesn't stand up.
(captcha: 'synic'. Yes, I am one, but not to the extent that I view politicians as time-travellers)
Anon@15:25 I don't suppose we will ever know (shell companies, holding companies, offshore companies and other obfuscations).
john b. What makes you think that the Tories weren't aware what was going on in the DTp whilst the other lot were in power, or that the land barons haven't got mates in both camps?
HS2 is a pointless over-provision of capacity - multiply the proposed seating capacity of the trains by the number of trains a day and reflect that this is all to be additional custom - it can't just be national vanity project, there must be some other reason for spending all that taxpayers' money and upsetting all those Tory voters. Sure, Labour introduced it, but the Tories are continuing with it, aren't they?
Mark, no, to be fair to the Heffer, I think he is implying the same corruption as I am.
HS2 is a pointless over-provision of capacity - multiply the proposed seating capacity of the trains by the number of trains a day and reflect that this is all to be additional custom
At least you've got the capacity point right. Now look at demand growth on the relevant corridors over the last 30 years. Saying it's a pointless overprovision of capacity is rather like someone in 1980 saying "it's a pointless overprovision of capacity to build the M25 with more than two lanes in each direction".
john b,
What are the numbers for number of passengers who did a complete journey from Birmingham to London (by year)?
"Saying it's a pointless overprovision of capacity is rather like someone in 1980 saying "it's a pointless overprovision of capacity to build the M25 with more than two lanes in each direction"."
You are comparing apples with oranges. When the M25 was built, there was no existing orbital motorway, so any estimates of usage were just guesses. The M25 also connects the ends of seven motorways and many other large A roads. It has 31 intersections. HS2 intersects with the national rail network at only two places, with no through journeys being possible without changing trains. Also the M25 is free at the point of use and the cost of a ticket on HS2 is likely to be pretty high, if the line is not to operate at a loss for many years.
HS2 intersects with the national rail network at only two places, with no through journeys being possible without changing trains.
Three places (Euston, Old Oak Common, Birmingham International). The second is important, because the M4/Great Western corridor is one of the most important parts of the country for business and currently has crappy connections with the Midlands and the North - basically no rail, and cars are forced onto the M25 or local roads. Also, half the services from day 1 will be through journeys that run to parts north of Birmingham international on the WCML.
Also the M25 is free at the point of use and the cost of a ticket on HS2 is likely to be pretty high, if the line is not to operate at a loss for many years.
You're right, of course: if road pricing operated like rail pricing, then the returns of new schemes would far closer represent their economic benefits.
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