If you really think that both money will be spent on reopening the Okehampton route and then eventually a Dawlish diversion then that's in the realms of fantasy land quite frankly.
If the Dawlish route needs to be replaced then the solution would be a Dawlish diversion and closure or the Dawlish route, clear and simple, Okehampton is not a solution to that problem, if there is justification to reopen Okehampton fully for the new traffic generated then fine although I personally doubt it, but don't use Dawlish as excuse.
The idea of using Okehampton as a backup to try and justify the reopening of the Okehampton line is half assed solution in my view which doesn't really address the issue properly.
There are three options for railways to Plymouth, all of which require Dawlish at least in the short term. Which, depending on what your requirements are, depends on which addresses the issue properly.
Option 1, stick our heads in the sand and assume that Dawlish is fine and then run around like headless chickens saying why wasn't done last time when something causes problems at Dawlish. This is the cheapest option with basicly £0 extra cost.
Option 2, build a new line avoiding Dawlish, this provides benefits in the form of faster journey times to Plymouth, it would probably open as an electrified line (or at the very least with provision to very quickly and easily electrify it at a later date). However such a route would be fairly costly, probably take a long time to get built (hence it potentially be electrified as at least one line to Exeter may be electrified by the time it is opened) and would involve a lot of politics if it meant that one or more of the existing towns with a station were to loose out. It would also mean that the Dawlish line would still be needed, even if it is just a single line option. However, given time the line through Okehampton could still be opened as it makes a case for itself. The cost could well be £700 million.
Option 3, reopen a fairly short length of line between Okehampton and Tavistock, this provides the benefits of better rail connections in this area, as well as potentially further afield (depending on how the services are run). it would be fairly easy to do, would have lots of local and political support and provides a route (even if it would take longer) which would mean the likelihood of Plymouth being cut off from the network was lessened or it were cut off it is likely to be so for a shorter time. It could also be opened fairly quickly (at least compared to option 2), meaning that we could see some benefit sooner. It could also justify, for instance by encouraging more people to use the line through Yeovil, further improvements to other lines/services. However, we could still end up in time having to do Option 2 as well if Dawlish becomes a very regular problem and/or passenger numbers justify a better (faster) service to Plymouth. The cost could well be £250 million.
I doubt that many would suggest that option 1 was a very good idea. It then comes down to picking between the other two.
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Compared to HS2, everything is small fry. But there are a lot of schemes that are small fry compared to a £250m line through Devon (e.g. electrification from Bolton to Wigan was around £37m and should give a big capacity increase on some services on a busy line). Its not about the price tag though, its about the costs when compared to the benefits.
Who mentioned HS2, I compared the £250million to the £30 odd million which was being provided just to make the network in the SW more resilient.
Yes schemes need to stand on their own, however that would go for any potential second/alternative route to Plymouth.
Where I have been pointing out some of the other potential benefits of the Okehampton route, this was to show that the benefits may not just be isolated to between Exeter and Plymouth. As some schemes provide benefits beyond their immediately local area and as such these may not be as obvious as those schemes which only really benefit their local area. Such schemes may also provide a stronger case for other schemes in the locality if it results in higher passenger numbers.