MARTIN WILLIAMS and TORCUIL CRICHTON

The case for a new high-speed rail service between London and Scotland is to be considered by a new company created by government.

Transport Secretary Geoff Hoon, who told MPs yesterday that a controversial third runway would be built at Heathrow, said that the company - High Speed 2 - would develop proposals which would involve the creation of a high-speed rail hub at Heathrow.

But while there was widespread support for the principle, there was concern among industry bodies in Scotland about high-speed links being developed south of Birmingham first.

It is believed that even if the high-speed rail link is approved, any development north of Birmingham would be 20 to 30 years away, if it is developed at all. Although not committing funding for the link, Mr Hoon said there was a "strong case" and the company would report back by the end of the year.

The rail industry is sceptical funding can be found for a project previously estimated at £31bn, leading to concerns a cheaper option will be sought.

The new company will be asked initially to develop a proposal for an entirely new rail line between London and the West Midlands, which would enable faster journeys to other destinations in the north of England and Scotland using both existing lines and a new high-speed rail network.

Government advisers believe any high-speed link that would cut the journey time from London to Scotland to three hours would boost the Scottish economy by at least £7bn.

Both Glasgow and Edinburgh Chambers of Commerce who say the Heathrow rail hub and third runway is crucial to Scotland's global business interests, are concerned that any high-speed line should be developed as a whole rather than in part.

Glasgow Chamber of Commerce chief executive Richard Cairns said: "Glasgow and Edinburgh are major cities and I don't think any UK government should regard these cities as an afterthought. It is unacceptable. We expect equality of access to the UK's transport infrastructure."

Graham Bell of Edinburgh Chamber of Commerce added: "If you build a bridge, you don't start at one bank and build to the other. You have to start on both banks."

Niall Stuart of the Scottish Council for Development and Industry added: "We are talking about a time scale of 20 to 30 years before the link would reach the central belt and that is far too long."

Glasgow City Council leader Steven Purcell called for a "firm commitment in the near future" regarding constructing a high-speed railway linking London, Glasgow and Manchester, along the West Coast main line.

Mike Weir MP, the SNP's Westminster environment spokesman said clarity was required over Mr Hoon's "vague" references to the development of new high-speed rail services between London and Scotland.

"Scotland needs a high-speed rail link to London, and we need to be certain that Geoff Hoon's warm references to public transport and rail improvements are a serious commitment rather than a cynical attempt to make the third runway proposals sound more palatable," he said.

In a statement announcing his package of transport and environmental improvements, Mr Hoon brushed off concerns over the environmental impact of a third runway at Heathrow which should be built by 2020, would take the number of flights from the current 480,000 a year to 605,000 and increase annual passenger numbers through the airport from 66 million to around 82 million.

He said the construction of the new Heathrow strip would create up to 60,000 jobs.

Something of the spirit of the Heathrow protest manifested itself in the Commons chamber yesterday when Labour MP John McDonnell, whose constituency covers the airport, took out his frustration on the ceremonial mace.

With Mr Hoon at the dispatch box Mr McDonnell, who had complained loudly that the decision was an "absolute disgrace" made his way from the back benches.

Mr McDonnell picked up the mace from the table in front of the Speaker's chair and placed it on the Labour benches, bringing proceedings to a halt.

With the chamber in uproar Mr McDonnell was "named" by the Deputy Speaker and was barred from the chamber for five days.

The 'ultimate protest' an MP can make By convention, the mace symbolises the authority of Parliament and the Commons cannot sit without it in position.

Removing the mace is considered the ultimate protest for an MP in the Commons.

Michael Heseltine earned his Tarzan nickname for swinging it above his head in 1976 as Labour MPs insisted on singing the Red Flag during the passage of an aircraft and shipbuilding bill.

Ron Brown, the former Labour MP for Leith, grabbed the mace and threw it to the floor in protest over the poll tax in 1988 and was ordered to pay £1500 for its repair.

In 1930, Labour MP John Beckett was ordered out of the Commons when he grabbed the mace in protest at the suspension of another member.

With the chamber in uproar yesterday Mr McDonnell was "named" by the Deputy Speaker.

Mr McDonnell attempted to apologise for his protest, but Deputy Speaker Sir Alan Haselhurst ordered him to leave "without further comment". Mr McDonnell later said he had nothing to apologise about.

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