HS2

[cromwell]

Now the Chairman of HS2 says that the final costs won't be known until all the subcontractors have been selected. ??????????????

So let me get this right. The government and subsequent governments launch the biggest infrastructure project ever in the UK, and have absolutely no idea how much it is going to cost? In effect, they have given a blank cheque to HS2?

That's the only conclusion I can draw. I ran a couple of projects back in the day and there was always a budget. I never heard of setting out on one with no idea what it would cost.

[Workingman]

Is this the HS2 that was predicted to cost £27bn to Birmingham and then a total of £56bn to Leeds and Manchester? That HS2? The HS2 that will be obsolete by the time all services are running sometime around 2033?

I have a plan for a business selling White Elephants to government, and I guarantee to sell them 10% cheaper than any other White Elephant vendor.

[Suff]

Now the Chairman of HS2 says that the final costs won't be known until all the subcontractors have been selected. ??????????????

Absolutely as the rules governing public contracting will change after March 29th.

Here is the kicker. EU Rules state that the public body cannot select a higher quote just because it is from inside the country. That will go away.

However, here is the reality of the higher quote. If the higher quote is a UK business, then that UK business has the majority of its staff resourced from and paid in the UK, it pays its corporation taxes in the UK and invests in the UK. That means at least 40% of any labour costs on the project go back to the treasury. Some 20% odd of material costs will also go back to the treasury as the UK company will be more likely to source materials in the UK.

Meaning that using a UK company, even if it were £10bn more, could be cheaper in the long run for the government.

Anyone who gives a fixed figure, right now, before Brexit has happened, is a fool. Hopefully with the collapse of the larger public service companies the majority of the complacent fools have gone.