In message .com
Mwmbwls wrote:

Further detail is emerging


http://www.transportbriefing.co.uk/story.php?id=4430

quote
Crossrail tax revealed as Mayor gains project control
Filed 10/10/07

Transport for London is to take charge of delivering the £16bn
Crossrail scheme, the government announced yesterday (9 October).

Cross London Rail Links, the 50/50 joint venture between TfL and the
Department for Transport which has worked up plans for Crossrail Lines
1 and 2, will become a wholly owned subsidiary of Transport for
London, subject to certain unspecified rights retained by the DfT that
will "reflect the Department's contribution to the project". TfL,
which answers to London Mayor Ken Livingstone, will also arrange to
borrow billions of pounds to pay for construction of the project.

Announcing his three-year Comprehensive Spending Review, Chancellor of
the Exchequer Alistair Darling fleshed out funding plans for the east-
west rail link. He confirmed that the Department for Transport will
provide approximately one third of the cost, in the form of a grant
exceeding £5bn, to be paid during the construction of Crossrail.

Fare payers will contribute around another third of the cost of the
scheme, with revenue servicing debt raised during construction by TfL
and by Network Rail in respect of works affecting the existing
National Rail Network.

The final third of the money needed will be provided by London
businesses through direct contributions and a levy on businesses.
Following the agreement reached by the DfT for Greenwich Council and
Berkeley Homes to fund Woolwich station, Canary Wharf Group will take
responsibility for delivering Isle of Dogs station. The City of London
Corporation will provide £350m towards the cost of the Crossrail
project, including a one-off lump sum, payable to the government in
2015/2016, of £200m from the City of London Corporation's own funds.
Michael Snyder, chairman of the City of London's Policy and Resources
Committee and the City Corporation have agreed to lead efforts to
raise additional contributions totalling £150m from businesses across
the capital.

Mayor of London Ken Livingstone has indicated that he envisages using
new powers proposed by ministers to levy a tax supplement on
businesses across London of two pence per pound of rateable value from
April 2010. Discounts would be available for companies with a rateable
value below £50,000. This money will be used to service £3.5bn of debt
raised by the Mayor during construction. The government is publishing
a White Paper setting out its proposals to allow local authorities to
raise supplementary business rates - in line with the Mayor's
Crossrail funding plans - to pay for wide-ranging economic
development.

The Mayor also hopes to secure further contributions from property
developers with schemes in the vicinity of Crossrail stations. Royal
Assent for the Crossrail Hybrid Bill is expected in summer 2008 with
construction of the scheme due to get underway during 2010.
unquote.

So, DfT will pay 1/3 = £5Bn. "The City" will pay another 1/3. Where is
the last 1/3 coming from? Fares we are told. But they will only come
when Crossrail is running, and there will be a gap of at least 10
years before then. Pain! I can foresee TfL's arm being twisted to
breaking to pay more. Upfront!

Michael Bell.



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