On 15 Mar 2007 10:00:48 -0700, "alex_t"
wrote:

From BBC News:
http://news.bbc.co.uk/1/hi/england/london/6452865.stm

Interesting bit:
BBC London's political editor Tim Donovan said Mr Livingstone may raid
Transport for London reserves and use a £200m loan he has taken out
for transport improvements in east London to help find the £300m.

I think you'll find he won't be able to do that without there being
severe consequences. The Treasury would leap on any misuse of the
specially granted powers to raise open market finance - they're just
looking for any excuse to reign in any perceived loss of their much
vaunted control.

The other consequence is that TfL's credit rating would be damaged if
reserves were raided and also if money raised from bonds for transport
were used to pay for the Olympics. What return would TfL earn from
funding the Olympics by stealth that would give an income stream to pay
those who have taken out "TfL bonds"?

The further effect is that any future bond offer would be more expensive
due to a poor credit rating and less likely to be taken up if there was
uncertainty.

Thus far TfL's financial position and controls has been sufficiently
good to make the extra financing effective and attractive. I really
cannot see the Mayor wishing to jeopardise such an important additional
power that he has gained after much fighting with Central government.

So it looks like there could be cuts in transport for the Olympics.
What do you think will be cut?
IMHO one of the DLR projects (replacement of the North London Line or
3 cars upgrade). Or may be even some other TfL project outside East
London :-S

None of them IMO.

DLR is a huge success story and much of the work is committed
contractually or about to be so. Ken needs every success he can get his
hands on. Overground is a hugely important scheme for TfL and the Mayor
- politically it is absolutely vital for Ken and also the Labour Party.
It simply will not be stopped given all the work that has been done.
Phase 2 might get delayed but I am sceptical about that because if
Overground is shown to work well in the early stages then the clamour
for a full "circle" will be huge.

The only scheme that is likely to go is East London Transit and that's
simply because Barking council won't allow it to run through the town
centre. Therefore there will probably just be a slightly improved route
369 instead. The savings are also small in the greater scheme of
things.
--
Paul C


Admits to working for London Underground!