I think it's worth actually reading what the Shadow Chancellor has said, instead of relying too much on media interpretations - the Independent has a transcript from
an Ed Balls interview yesterday which has some interesting comments:
Victoria Derbyshire: Can you be clear on Labours policy on HS2?
Ed Balls: Yes, there is no blank cheque from the next Labour government for HS2. Weve always supported the idea of a new north-south rail link, but when I listen to David Cameron and George Osborne giving the impression that, even though the costs are going up billion by billion, and even though the benefits are becoming less clear, they are going to go ahead regardless. I think that is completely irresponsible. A Labour Treasury wont treat public money in that way
VD: Can you be clear what no blank cheque means? Does that mean at £50bn Labour would go ahead with it and if it rises above that, you scrap it?
EB: No, because there are two sides to this ledger. There is both the cost and the benefit. And we need to know, one, are the costs under control, and they have been spiralling in recent months; and secondly, are the benefits really there so that this would be the best way to spend that money, rather than using it on other ways to improve our transport network or our rail network. And that is something which we are looking hard at, as is the new chair of HS2, and the NAO and the PAC. Because, at the moment, those questions havent been answered. And you know, I
VD: Once they are you can be definitive with voters?
EB: Absolutely. And if the case is clear, the benefits are strong, its the best way to spend the money and the costs are under control, at that point I would be happy to say well support it. But what I am not going to do is say we support it when the costs are rising, the benefits are unclear and the government are acting like cheerleaders rather than proper stewards of public money. That is not a road I am going to go down and
VD: Well you did with the Millennium Dome, lets be fair?
EB: As you know Victoria, government and being a grown up is partly about learning from mistakes and in the case of the Millennium Dome that was a Conservative Michael Heseltine vanity project which the Labour government should have scrapped in 1997 and didnt and it was a mistake and I think you should learn from your mistakes.
VD: Is HS2 a vanity project then?
EB: Im not saying that at all. What I am saying is that we need to know the costs are under control and the benefits are real. And if we judged that it wasnt in the national interest, we would not go ahead. And if it is in the national interest, if this is the best way to spend £16bn on transport in the next Parliament and the extra billions in the years after, then well give it the go-ahead. But, at this stage, I genuinely dont think that the evidence is there, the case has been made, the NAO has been very critical and the government cant answer the questions. In those circumstances, it would be irresponsible for me to say, regardless of the benefits, we are going to pull the plug, but it is also really irresponsible for me to say well OK, whatever it costs and however obscure the benefits, we will go ahead anyway, because I dont think that is the job of the Chancellor or the Treasury or proper government. George Osborne seems to be a cheerleader, that is not the job of the Treasury and that is not the role I am going to play. I am going to be
VD: So it will be your final decision on whether Labour backs HS2?
EB: No, of course it wont. It will be a decision for a Labour Cabinet or a Labour shadow Cabinet led by Ed Miliband of which I am an important player, but only one voice amongst many. My job though is to be absolutely clear: a Labour Treasury will keep a tight grip on costs and always want to know the benefits are there. You are right, there have been times in the past where that wasnt done the Dome. There have been times in the past where we were hard-headed and said yes go ahead with that project like the Olympics completely the right thing to do. Even on the Olympics, though, it was the Treasurys job to say are you sure the costs are under control, make sure it is managed well. But the benefits were there and real. In the case of HS2, we need to see these benefits, it needs to be properly set out. I dont think that case has been won yet. And as I said, a Tory Chancellor being a cheerleader, a Labour Chancellor being disciplined with public money. I think the public want discipline on public spending and that is what I am going to deliver.
This still sounds to me like a politician distancing himself from the controversy and the headline figures of cost,
not the project itself - if anything there's a softening of his stance, with no arbitrary 'cap' and comparing the cost of HS2 with other ways of investing in the rail/transport network.
Chris