On Sun, 17 Oct 2004 12:03:34 +0100, "Angus Bryant"
wrote:

"ted" wrote in message
news

I note from the Indie on Sunday that allegedly the cross rail costs are
going to be born by central government and NOT put out to PP finance.
We await what actually happens on the ground.

Story at:

http://news.independent.co.uk/busine...p?story=572873

Treasury to bankroll Crossrail
By Jason Nissé
17 October 2004

The Treasury is to underwrite the entire £12bn cost of the Crossrail project
to build a rail link across London after deciding it will not be a
public-private partnership.

Though it will look for contributions of up to £2bn from London businesses
and input from Transport for London, the Treasury has accepted that the PPP
model will not work for the giant project.

If this is true then it is a huge change of mind on the part of the
Treasury.

I imagine that the apparent success of the CTRL phase 1 may have
persuaded them that a large scale project can be successfully delivered
using more traditional funding methods and a well run project team.

The only key different being that where CTRL phase 1 was constructed is
nothing like the middle of London where CTRL phase 2 has encountered
rather more difficulties.

Crossrail was created as a joint venture between the Strategic Rail
Authority and TfL, which is part of the London Mayor's office. However,
since then it has been approved by the Transport Secretary, Alistair
Darling, and plans have been announced to abolish the SRA. The Treasury and
the Department for Transport last week moved to assert their control over
the project, appointing financial troubleshooter Adrian Montague as
chairman.
Mr Montague wrote the report that led the Government to back the project.
The Treasury, TfL and London business leaders are working on a funding
package but it is understood that a rise in fares has been ruled out. Higher
business rates may be used but that is unlikely to raise more than £2bn.

I just wonder whether Mr Montague is actually the person to see
Crossrail through to completion. He might be good with the funding bit
and may be trusted by the Treasury but is he tough enough to deal with
all the problems that real construction of the project will bring?

It's interesting how highly Labour value a win by Ken Livingstone in the
London Mayoral vote - how many billions will have been pushed London's
way if this leak is true? - £15-16bn?

Civil servants have persuaded the Treasury to keep the project under public
control to minimise costs. "It will be publicly funded and publicly
cliented," said a well-placed source.

It will be nice if this is true but I'm not holding my breath.
--
Paul C


Admits to working for London Underground!