The Parliamentary Under-Secretary of State for Transport (Andrew Jones)
I congratulate the hon. Member for Vauxhall (Kate Hoey) on securing the debate on this important topic. I am sorry that I am not my noble Friend Lord Ahmad, whose responsibility this is in the Department for Transport, but I understand that a meeting has been arranged and that she will be seeing him shortly.
I recognise, as do the Secretary of State and all my ministerial colleagues in the Department, that the garden bridge is a subject that divides public opinion—it is dividing opinion tonight on Benches just a few feet away from each other. Its supporters argue passionately that it will be an iconic and beautiful addition to the London cityscape, while its opponents argue that it is an unnecessary eyesore and that no public money should ever have been put into it.
Let me start by explaining why the Government decided to support this iconic and novel project in the first place. The previous Mayor of London was approached some years ago with an idea for a completely new type of bridge: a footbridge that was also a park, and a place where people could cross the river as part of their journey or stop and enjoy the surroundings and wonderful views of London and the river. The Mayor and Ministers at the time considered that this could be an innovative and iconic project for our city, but they did not—they still do not—consider that the project should be wholly funded by the taxpayer. However, they agreed to help with some funding to kick-start the project and stimulate private sector funding. The then Chancellor of the Exchequer therefore announced in the 2013 autumn statement that the Government would provide £30 million towards the project as long as the Mayor contributed a similar amount, and as long as there was a satisfactory business case to show that the project would deliver value for money for the taxpayer.
The Garden Bridge Trust and Transport for London produced a business case in early 2014, which the Department for Transport analysed carefully in exactly the same way as it does for any transport project. The analysis showed that while it was a highly unusual project and one with a wide range of possible benefit-cost ratios, there was a reasonable chance that it would offer value for money for the taxpayer. We therefore agreed to release the £30 million of funding that had been pledged by the Chancellor, but importantly we attached several conditions to our funding, including a cap of around £8 million on the amount of Government money that could be spent on pre-construction activities, which was designed to limit taxpayer exposure in the event that the project did not proceed. A requirement was also included for TfL to draw up a detailed funding agreement with the trust governing how the money would be used.
Over time and in response to requests from the trust, the cap on the Government’s exposure was increased in stages to £13.5 million as circumstances changed and as it became clear that more money was needed to get the project to the point at which construction could start. The trust then asked the Government earlier this year to underwrite the project’s potential cancellation costs. Let me be clear that that was not a request for additional funding; instead, it was a request to be able to use some of the £30 million that we had already committed to pay the project’s cancellation costs should that be necessary. Without such an underwriting guarantee, the trust said that the project could not continue. After careful consideration, the Department agreed in late May to provide a time-limited underwriting guarantee but, again, with various conditions attached, including a requirement for the trust to provide more regular reports to the Department on the status of the project and the steps that it was taking to address the risks.
Over the summer of this year, as a result of further delays to the construction timetable, the trust asked whether the underwriting guarantee could be extended beyond the September deadline. The Department agreed last month that it could, but in such a way that the risks are more fairly shared between the Government and the bridge’s private sector backers. To be precise, the Government will now underwrite £9 million of the cancellation costs, should they arise, with the private sector required to underwrite any such costs above that level. The Government therefore continue to support the project and wish it well, but we have made it clear to the trust that not only public money should be at risk should the project fail.
The challenge now for the trust is to focus its efforts on getting private sector backers to take on some of the risk. We have also reiterated that the Government have no intention of putting more than the £30 million originally pledged into the project—that is a cap.
Peter Dowd
Will the Minister tell us whether the first tranche of the cancellation costs will be picked up by the taxpayer or by the private sector?
Andrew Jones
My understanding is that it would be a joint undertaking, but I will check the detail of any financial arrangements and report back to the hon. Gentleman.
As I was saying, the bridge must be predominantly funded by the private sector. As things stand, at least two thirds of the funding will come from private donations.
I understand that there are many concerns about the project, some of which I will talk about. The hon. Member for Vauxhall has already articulated a number clearly and in detail. The Garden Bridge Trust was set up in 2014 to manage the construction of the bridge. This experienced group of trustees has complete control over development and fund raising. The Department for Transport and TfL speak to the trust regularly to discuss progress and concerns. A significant amount of work has already been achieved on this complex project, which involves many different interested parties, and a huge amount of progress has been made. The land must be secured, permission to use the river obtained, and all necessary land planning conditions secured. A large ship, HQS Wellington, will also need to be moved. Those are all complex tasks that will take some time to achieve. There is still much work to be done before construction can start, but most issues are expected to be resolved soon.
Bob Stewart
The Minister might not know something that I became aware of today. A considerable part of the constituency of the hon. Member for Vauxhall (Kate Hoey) on the South Bank—a tree-lined avenue—will have to be demolished. The question therefore is: are we going to lose a tree-lined avenue, and will that be the equivalent of what we are going to get on the garden bridge?
Andrew Jones
I thank my hon. Friend for his intervention. The hon. Member for Vauxhall said that 29 trees would be removed, but the Garden Bridge Trust would argue that they would be more than replaced by the increased number of trees that would be part of the planting.
I am aware that many concerns have been raised about the bridge, and who would be able to use it and when, so let me clarify some points. While the bridge will principally be a footbridge, it will be open to all, although cyclists will be asked to dismount when crossing it. That is consistent with other footpaths in this area, such as those along the South Bank, and is simply to ensure the safety of pedestrians.
Kate Hoey
The Minister might be aware that the Ramblers, an organisation that is not known to oppose anything that will help people to be able to walk, has made it clear that it opposes this, because one condition of going on to the bridge will be that people will not be able to be led in a group, so it would not be able to take its groups across the bridge. Many different conditions have been put in place. This is not just going to be a garden or a bridge, and it certainly cannot be called a garden bridge.
Andrew Jones
I was aware of the Ramblers’ objections, but the bridge is certainly planned to be open to all. It will include step-free access and there will be no charge to use it. I am aware of a media report that there will be bans on large groups, but I understand that that is not correct, although they will be encouraged to phone in advance to find out the best times for a large group to visit. There is no ban on large groups. The bridge will be closed at midnight, in line with local attractions and transport facilities. Again, that is consistent with other parks in London, although some of them close earlier, at dusk.
There will also be some days, or parts of days, when the bridge is closed. These days will be limited. The purpose will be to ensure that income can be generated to ensure that the maintenance of the bridge is self-funding. There will be a maximum of 12 of those days through the year. There are concerns about the use of the land on the South Bank, which have been clearly articulated in the House, and I certainly sympathise with residents’ concerns about the loss of some of the trees in this area. However, the Garden Bridge Trust plans to plant more than 270 trees on the bridge, as well as thousands of bulbs and plants, to create a tranquil place, which I hope would be used by residents in the area.
I understand the concerns that the hon. Lady has clearly articulated about how the trust is being run, how public money is being spent and how much transparency there is around this project, but there have been several reports on and investigations into this project. The London Assembly has reviewed the procurement process, the National Audit Office has reviewed the project and is currently reviewing the Department’s grant control measures, and the Charity Commission is looking at how the trust is run as a charity. We have never sought to make any secret of these investigations. I can go further by saying that the fact that they have taken place demonstrates the robust scrutiny that has been applied to this project to ensure it is being run properly and that we get the best value for money for the taxpayer.
Kate Hoey
None of this scrutiny would have taken place just because the NAO decided to do it. These things have happened because local people, local councillors, myself and others who are campaigning were so concerned about what was happening that we asked the NAO and Greater London Authority members to investigate. The investigations are still going on, so this has not been completed. The fact that this is being investigated is not any sign that there are not huge problems, and I think that all sorts of things will emerge when the process is finished.
Andrew Jones
I recognise that there are many questions to answer, but the idea that this project has not had scrutiny at local council, London Assembly or national body level is not quite fair. The procurement process itself has certainly been reviewed, and no significant faults found with it. The hon. Lady mentioned that the trust has not published its accounts, but the trust has made lots of information about its expenditure public on its website. The trust has a funding agreement with TfL, which is available online, and it will be publishing its annual report and statement of accounts later this year.
Stephen Pound
I am extremely grateful to the Minister for giving way. I must say that Earth has nothing to show more fair than the view from some of London’s bridges. Does he not agree that, over the years, London’s bridges have had houses, markets and shops on them? People have traded on them. They have been not just thoroughfares or tarmac arches in the sky, but glorious and marvellous examples of how to live, work and sell in the space above the river. Can the Government not be a little bit more proactive and positive and say that this is going back to one of the great glories of our city when there were occupied bridges and floral arches from one bank to the other—what a marvellous vision? I urge the Minister to articulate his views more strongly.
Andrew Jones
I would always struggle to match the oratorical flourishes and style achieved by the hon. Gentleman. I certainly agree that, when we see magnificent bridges around the world including in London, they are inspiring sights. I recognise entirely his wise words about the views from London bridges. As one looks up and down the river, the views are positively marvellous. Whether they are the best views in the world is a little open to question. I suggest that some of those could indeed be in the Harrogate area.
We all have our individual favourite views. We have had interventions and speeches across the House this evening with people championing particular transport investments in their areas. Everybody here has projects that they wish to see progress locally, but I hope that no one doubts the Government’s commitment to investment in transport. It is very hard to play off one scheme against another for comparison purposes, as we would be comparing different modes of transport in different regions. The bottom line is that Members are always right to speak up for their areas. Like my hon. Friend the Member for Plymouth, Sutton and Devonport (Oliver Colvile), who is no longer in his place, they are also always right to speak up for hedgehogs.
Diana Johnson
The scheme to which I referred in Hull—electrifying the train line—involved private sector money. It was not going to cost the Treasury or the Department for Transport; the money was there from the private sector, yet the plan has been sitting in the Department for two years waiting for a decision.
Andrew Jones
I understood the hon. Lady’s point. All I can say is that some projects are very complex as they have a mixture of public and private finance, and in some cases, it takes a very long time to get projects out of the development phase and into construction. That is a comment not on the individual project that we are talking about here, but on projects overall.
In conclusion, although I recognise and understand the concerns raised by the hon. Lady and other Members in the House today, the garden bridge is a unique and exciting project. The hon. Member for Ealing North (Stephen Pound) has asked whether I could be much more euphoric in my language. Well, it is certainly an opportunity to showcase the ambition, creativity and talent that exist in this country. We see it in so many examples, and transport is one area in which we lead the world.
Kate Hoey
The Minister has said very little about some of the important criticisms that I made of the procurement process and the fact that scrutiny from City Hall was done by a company that was involved with the garden bridge. Can he tell us, in the secrecy of this Chamber, that he has no concerns about some aspects of the project? If, as we hope, the bridge project fails, will he lose any sleep?
Andrew Jones
I see this as a project that could well enhance this magnificent capital city. It has to be done correctly. I have not been involved in the process up to now. As the hon. Lady knows, the Minister who was responsible is my noble Friend Lord Ahmad. Would I lose sleep over it? Well, if it is done correctly, it could be an opportunity to enhance what is already a wonderful part of our wonderful capital.
I see many examples around our country where people are a little cautious, perhaps a little sceptical, about projects, but sometimes when those projects come to fruition or start being built, people row in behind them and realise just what they can be. This could well be one of those cases. I hope we will have a project to show that London is a thriving, creative, bustling, ambitious city with all the talent in the world. It will show that London is open for business, and the Government wish it every success.
Question put and agreed to.