Transport (Investment)

Bill Esterson Excerpts

Tuesday 26th October 2010 Commons Chamber

[Mr Hammond]

Both schemes to which my hon. Friend refers are in the development pool, and I urge him to urge his local authority to engage very seriously with that process, to sharpen the pencil, to think innovatively and to come back with a funding bid that puts those schemes in the vanguard and ensures that they are funded when we appraise the bids

[Bill Esterson (Sefton Central) (Lab)]

I welcome the news that the Thornton to Switch Island relief road will be funded, but will the Minister clarify what he means by revised funding bids from local authorities? Sefton council has already put almost £6 million towards the project and is “maxed” up to the limit, so to speak, so it is difficult to see how it could find further funds. However, in response to an earlier question the Minister said that money might be released from savings elsewhere. Could that money be used to reduce Sefton’s overall bill? Does he see it going up or down?

[Mr Hammond]

I can safely say that any local authority that comes back with a revised bid offering less local contribution is unlikely to be looked upon favourably. The Thornton to Switch Island link is a very high value scheme, delivering staggeringly high benefits for every unit of cost, but even so it is right that we sit down with the local authority and look at the cost estimates. As I said a few moments ago, some were done at a time when the contracting market for construction works was much firmer than it is now, and we must ensure that every opportunity to drive out cost and drive up value for the taxpayer has been taken. That is what the process will be. It will not take very long, because we expect to be able to undertake the work over the next couple of months and to confirm funding in January.