Crossrail

Mark Field Excerpts

Thursday 3rd June 2010 Commons Chamber

[Mr Raynsford]

I am grateful for that intervention from my hon. Friend, who knows only too well the importance of improved transport links to south-east London. He is also aware of the battles that we have had to fight over the years to secure investment in improved transport linkages, not least at the Crossrail station at Woolwich, to which I shall refer in a moment.

The concept of Crossrail has been around for a long time, but the scheme has had to go through many hoops. There was a false start under the previous Conservative Government in the 1990s, and the current scheme was subject to lengthy and detailed scrutiny during its passage through the last Parliament. Members who were in this place at that time and who followed the Crossrail Bill will know of the degree of detail entered into by those Members who served on the hybrid Bill Committee, and they will appreciate the great endeavour that the Bill demanded of those Members.

The result was clear, with strong support from the Committee for a scheme that would connect east with west and the City with Canary Wharf and Heathrow, as well as linking communities both in south and east London and out along the Thames Gateway to major employers in the centre of London. The Committee was also clear on the strong case for a station at Woolwich. The Woolwich station was incorporated in the Bill at the Committee’s instigation, not least because its work demonstrated both the favourable cost-benefit ratio for the station in transport terms and its huge regeneration potential in a deprived area of south-east London. The population in my borough of Greenwich is projected to grow by 113,000 by 2031. At the same time, the number of jobs in the borough is projected to increase by just 8,000; however, just across the river, Canary Wharf will require an extra 110,000 workers. Linking the two is vital, and with just a seven-minute journey time from Woolwich to Canary Wharf, Crossrail would meet the need admirably.

Demand for transport links is often underestimated. When the docklands light railway first came to Woolwich 18 months ago, Transport for London estimated that 2.4 million journeys would be made annually to or from Woolwich Arsenal station. Yet in the first year of the DLR’s operation to Woolwich, actual usage was 5 million—more than double the estimated number of users. That demonstrates the huge demand for improved services and the potential for Woolwich to serve as a strategic transport hub, bringing hundreds of thousands of homes within commutable distance of Canary Wharf and the City of London.

The huge benefits to business and the economy from Crossrail explain how the funding package for the project is heavily supported by business contributions. Business organisations such as London First have passionately advocated the scheme, and the business community is supporting Crossrail in two distinct ways.

[Mr Mark Field (Cities of London and Westminster) (Con)]

As the right hon. Gentleman is coming to funding, does he agree that, although we all appreciate that these are difficult and constrained economic times, in many ways we are beyond the point of no return? I very much agree with what he and other Opposition Members have said about the benefits that would extend beyond south-east London through to the country, and as he has rightly pointed out, the business rate supplement is already in place. Huge amounts of money have been raised, both from Canary Wharf Group and the City of London. We always talk about the £16 billion package, but in fact the central Government sum is considerably smaller, at around £5.5 billion, of which £2.5 billion has already been spent—I think of the areas in my constituency around Tottenham Court road, Hanover square and Bond street in Mayfair. Does the right hon. Gentleman agree that, in essence, we are beyond the point of no return? Money has already been spent, but the central Government sum to be spent from this point on is very small in the general scheme of things.

[Mr Raynsford]

I agree very much with the hon. Gentleman on both points. First, the funding package involves a range of contributions. Although the contribution from the Government, and Transport for London and the Mayor is important, the business contribution is also critical in supporting the scheme. It would be absolutely wrong if the scheme were put in jeopardy by the withdrawal of any element from any of the parties. Secondly, I agree with the hon. Gentleman that so much work has gone into the scheme already that it would be a total tragedy if its continuation were to be questioned at this stage.

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[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

I congratulate the right hon. Member for Greenwich and Woolwich (Mr Raynsford) on securing a debate on this very important topic. I first became a supporter of Crossrail around 10 years ago in my former role as one of London’s Members of the European Parliament, but my involvement has been brief in comparison with the right hon. Gentleman’s long track record. I am sure that everyone will join me in paying tribute this evening to his long and distinguished record of campaigning for Crossrail in general and for Woolwich station in particular.

It is a great honour for me to address the House from the Government Dispatch Box for the very first time. I also count it an honour that my debut here today gives me the opportunity to focus on a project that is so important not just for south-east London but for the capital as a whole, and, as has already been pointed out, for the whole of the UK economy. I reiterate, and warmly welcome, the right hon. Gentleman’s statement on the benefits of Crossrail, which he so eloquently set out this evening.

Crossrail received support from both the coalition partners before the election. That support has been carried through to the formal coalition agreement setting out our programme for government, and the new Secretary of State has made it clear that we are committed to Crossrail. Crossrail is under way: it is happening, it is being built, spades are in the ground, and no decisions have been taken to change the scope of the project.

Our challenge is to deliver an affordable world-class railway. I can assure the right hon. Gentleman that the Department for Transport is working hand in hand with Transport for London, the Mayor and the leaders of the Crossrail project to secure that result. That is why Crossrail Ltd, the company tasked with delivering the project under the leadership of Terry Morgan and Rob Holden, is undertaking the full range of work to ensure that the scheme remains affordable, on budget and on time.

On the right hon. Gentleman’s question about the timetable, I am sure that he would not expect me to take the pressure off those delivering the project; it is my job to hold their feet to the fire and ensure that they deliver on time. It is vital to ensure that each element offers value for money. Indeed, hon. Members familiar with basic project management techniques, as I well know the right hon. Gentleman will be, will appreciate that this work is essential good practice for all construction schemes—and Crossrail is no exception.

I can assure the House that real progress is being made on Crossrail. There are already around 2,000 people working on the project. Last month saw the first anniversary of the commencement of construction work on the Canary Wharf station, which is now progressing ahead of schedule. Enabling work, as I think we all know, is very visible at numerous sites around London, including at Tottenham Court Road, Paddington, Liverpool Street and Bond Street stations. Further work is about to start on the ticket hall at Farringdon. Much of the land needed for construction has already been purchased. Less visible—but, I say to the House, no less important—are the efforts Crossrail Ltd is making to develop detailed designs and plans for different parts of the project. Work is also under way on how services will be operated and how best to integrate them with the rest of the capital’s transport network.

In these difficult times it is more important than ever to ensure that every element of the scheme is tested and retested for value for money. To put it simply, we owe it to all those funding the project, to the business contributors and taxpayers of today and to the fare payers of tomorrow to do all we can to keep this project affordable and to deliver the best value for money. Working closely with the Mayor and the Crossrail team, it is the Government’s duty to ensure that every pound invested is well spent and delivers maximum value.

[Mr Mark Field]

I entirely endorse what the Minister has said about the need to secure maximum value for money—we would all agree with that—but has not one of Crossrail’s difficulties been caused by the publication of headlines referring to £15.9 or £16 billion, when in reality the central Government element of the expenditure has been considerably less than that? Earlier in her speech the Minister talked about spades in the ground, but as she will recognise, it is rather more than that. Over £2.5 billion has been spent on compulsory purchase and on works already undertaken. Does she agree that, although this does not detract from her central argument about the need to ensure that there is good value for money in the future, we are, in a sense, beyond the point of no return?

[Mrs Villiers]

My hon. Friend has made a strong point. We need to concentrate on the work that is going on, rather than on the speculation and scare stories that have appeared in parts of the London media.

The work under way at Canary Wharf station already provides a clear example of innovative engineering techniques that have offered significant savings without compromising delivery. We need to learn from that example when delivering other key elements of Crossrail. I know that Crossrail Ltd is committed to the highest standards of procurement practice to bear down on costs and ensure that the project remains affordable, and that must continue to be a key goal for the Crossrail team as progress is made towards letting contracts later in the year.