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Crossrail finance alarm raised by business chiefs
Jason Beattie, Chief Political Correspondent14 Nov 2007
Business chiefs today sounded the alarm over the financial arrangements for the £16 billion Crossrail project.
In a sharply worded letter to Transport Secretary Ruth Kelly, City leaders express concern about the sketchy finance details and the proposed management structure for the rail link.
They call on Ms Kelly to set out in full how the scheme will be paid for, including the exact contributions from Government, private companies and the taxpayer.
The letter is signed by representatives of three of the most prominent business groups in London - CBI chairman Andrew Eddy; Stephen Greene, president of the London chamber of commerce and industry; and Harvey McGrath of London First.
After years of delay Crossrail has been given the go-ahead by Gordon Brown and the first trains should start running in 2017. But initial jubilation has been replaced by increased scepticism about the funding.
In the letter to Ms Kelly, the three businessmen call for:
• A breakdown of the contributions from the funding partners, including exactly how much BAA, Canary Wharf and the City of London have committed.
• The amount expected to come from the supplementary business rate and a statement on how long it will remain.
• What contingencies are in place should the costs rise above £16 billion.
• An independent audit of the structure and governance of the project by an external assessor.
They say that as "significant financial contributors" London businesses should be regarded "as equal partners".
The letter raises questions about the transfer of responsibility for Crossrail from the Department for Transport to Transport for London.
The businessmen add that they hope Cross London Rail Links will be able to "operate in a commercial way", independent of TfL and the department.
