Speeches by Lowe.

“The NAO says, in paragraph 2.9 on page 28, “We have previously observed that costs are more likely to rise if project sponsors have vested interests in ensuring projects are funded (which can lead to over-optimism not being challenged or even to deliberate underestimation).” Is that a concern to you?”

“On Lowestoft, which you mentioned, along with Hinkley Point C—I want to ask you a question about that in a moment—there is a lot of kit coming in from France that is made in France. To your point about how much of this is constructed in the UK, I think that a lot of the big kit is still being made in France, and French…”

“So manufacturing in France and service industry in the UK; is that what you are saying?”

“People can go bust, though, Nigel, as you know. That can knock you off course. If you sign a fixed contract with somebody with a deficient balance sheet and they go bust, that costs you.”

“Thank you for that. I have one question for all of you about the coastline. You are right on the coastline. I have not had a chance to look at exactly what you will do regarding the shoreline, but you need to be aware that if you do anything there—this comes back to Hemsby, in my constituency, which the Government prom…”

“I expressed my concerns in a previous question. On a similar but much smaller scale, I managed the construction of Southampton football club’s stadium, which cost about £34 million. We had very strict rules about reporting cost overruns. There was a very restricted number of people—two of us: me and the managing direct…”

“I am pleased that you are all so confident that you are going to deliver the project, given your previous experience, but we have to come back to the Committee’s experience of past overruns that set out with all the best intentions and ended up in catastrophe. I have written a list of things that I think have already s…”

“But if you do more to that coastline, Nigel—”

“Sterling might collapse, too, in which case your costs go up.”

“But it was used as an exemplar.”

“I think you have the worst of all worlds here—that is my opinion, and I am not sure that you are going to change my mind. This Committee’s job is to try to protect the taxpayer, but the poor taxpayer is a punching bag for any form of incompetence—on which the Government have a proven track record—during the delivery of…”

“But that was the Government’s choice.”

“You also mentioned that Hinkley C was financed at the time when interests were virtually 0%, but let me tell you that that is not normal in history. Those interest rates were an outlier; where we are now is far more common in terms of long-term interest rates. That was because the Government were printing vast sums of …”

“It was their choice, wasn’t it?”

“Rachel has a question, doesn’t she?”

“That is also in the Report, isn’t it? I have written “joke” against that. Having spent all that money, that would be a complete joke.”

“You think—have you done a lot of modelling on that?”

“They probably did a lot of modelling on HS2, and that didn’t work too well, did it? But there we go.”

“It is still outdated technology, though.”

“Nigel, I think you were involved in Hinkley Point C. Am I right that a lot of the cost overrun came from a lot of half-witted civil servants with not enough to do turning up on site, demanding meetings, cocking their leg on things and getting in the way? Is that a fair comment? Have we got that under control for the ne…”