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Hoon says Crossrail will be on time and on budget
Nicholas Cecil, Chief Political Correspondent17 Oct 2008
TRANSPORT Secretary Geoff Hoon attempted to quell fears today that Crossrail could be delayed.
A deadline to agree funding details was missed at the end of September a year after Gordon Brown gave it the go-ahead and there have been escalating concerns among MPs and experts that the scheme could also be delayed by the recession.
The three main financial sources are a £3.5billion special levy on London businesses, a £2.7billion loan off the back of future rail fares and a £5.1billion grant from the Government.
But airport giant BAA has not yet committed itself to a £250million contribution to the rail link planned to open in 2017 running from Heathrow to Shenfield and doubts are also being raised over predicted profits for Transport for London from the redevelopment of land at the bottom end of Tottenham Court Road.
Other uncertainties about the deal include fears that there are fewer City firms around to stump up an extra contribution of £150 million and worries that the redevelopment of stations on the route will not provide the profits originally expected.
London Mayor Boris Johnson's transport officials and the Department for Transport are still in talks on the details of the deal to give the London Mayor full control over delivering the £16 billion project.
Mr Hoon stressed they were not wavering on the cross-London rail link. He told the Evening Standard: "The Government is fully committed to Crossrail and is determined that the project will be funded as planned, delivered on time and on budget.
"If we are to stimulate Britain's economic growth it is essential we make the right long-term decisions and investments in our transport infrastructure."
And earlier this week, when talking about the credit crunch, Mr Johnson said: "We must make sure we continue a vital programme of investment in London's infrastructure - Crossrail, the Tube upgrade, the Thames tunnel and the Olympic Park."
But shadow transport minister Stephen Hammond accused the Government of being too secretive. "We support Crossrail in principle but we need to be clear that there is a funding package put in place," he said.
Tony Travers, director of the Greater London Group at the London School of Economics, believes the funding package will have to be restructured given the changed economy. "It's a less than 50 per cent chance that it will start on time."
Yesterday Crossrail underlined its determination to press on by sending out letters to 97 landlords around Tottenham Court Road to say their properties would be compulsorily purchased. A number have said they will challenge the action.
Reader views (10)
This would be a good time to commence construction of the Crossrail. With unemployment likely to increase Crossrail can deliver thousands of jobs in the construction industry which should also keep the project ontime. Falling commodity prices will ensure the project is delivered within budget.
The notices were served on the 97 business addresses around the Tottenham Court Road site at the end of Oxford Street. Westminster Council and the traders of Oxford Street will welcome the regeneration of the worlds most famous shopping street which has become blighted with tacky souvenir booths and congestion around the station.
Crossrail will take years to deliver even the core section between Canary Wharf and Bond Street but the anyone living in London or doing business will tell you that this project is an absolute minimum improvement to the transport capacity if London is to retain its reputation as a place to live and work.
Clearly the funding package will need to be restructured with the government funding a greater portion until the economy recovers. Unlike the banking bailout ordinary people struggling to get around London and the south east will benefit form this transport investment for years to come.
It is encouraging that you report the shadow Transport Minister throwing the Conservatives support behind a scheme that will deliver thousands of jobs and billions for the economy during this time of economic uncertainty.
- Damien Vaugh, SE London, 17/10/2008 16:55
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Very easy for Hoon to make these predictions. By the time it's supposed to be completed, he will be one of the many forgotten mouthy NuLabour fools,
- L.Taubler, London / UK, 17/10/2008 16:53
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Crossrail should have been started in the 90s. Even allowing for "Tory micromanagement and break-up of British Rail" (to save future posters the bother...), Nu Labour have had 11 years to build this train set. We even managed to do the 67 miles to Folkestone in that time, so surely we could have managed a couple of tunnels under London in that time. And it wouldn't have cost the same as the average banking crisis if it had been done 11 years ago.
So Geoff, it's already late and over-budget.
- Nobby Clark, Perth, Scotland, 17/10/2008 15:58
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Haha - Nu Labor and within budget and within time and properly working? I think not.
- Georgie, Islington, London, 17/10/2008 14:54
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By the time Labour have finished with it, won't be so much as cross as livid.
- Bob, Cheam, 17/10/2008 14:42
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One of your articles a while back said that having gained approval, detail design could go ahead. Until this is done, how can anyone know what the budget will be, let alone whether it will be met?
PS: I've just had a brilliant idea! It could be funded out of the profits from the Olympics. Why has noone thought of this before?
- Mdj, Leyton, e10 london, 17/10/2008 14:15
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That should be easy with a recession coming. Companies will be desperate for work, and will have an incentive to keep ahead of schedule and under budget!
- Nigel, London, 17/10/2008 13:30
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Yes, and so will the Olympics. Carbon emissions will be down 80% by 2050 and labour will never break the fiscal Golden Rule. Next, Turkeys will vote for Christmas and pigs will be getting airborn.
- Paul, London, 17/10/2008 13:20
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"Hoon says Crossrail will be on time and on budget"- It's an absolute dead cert' that it won't be, then!
This project should have been completed decades ago.
- Keith Lonsdale, Doncaster, 17/10/2008 13:15
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It is possible that the recession will even *help* Crossrail, by pushing down the building costs.
Many of the grand old skyscrapers in New York City were built during the great depression, and benefitted from it in this way.
- Dan, East London, 17/10/2008 11:50
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