Crossrail

Stephen Pound Excerpts

Thursday 3rd June 2010 Commons Chamber

[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.

[Stephen Pound (Ealing North) (Lab)]

rose—

[Mr Raynsford]

I shall give way very briefly, as my time is running out.

[Stephen Pound]

This is a subject to which my right hon. Friend brings his usual expertise and passion. I agree with the hon. Member for Cities of London and Westminster (Mr Field) that there is no possibility of a U-turn on the permanent way. Linked to Crossrail is High Speed 2, a matter of great importance to those of us in west London, and we need clarity on this. We need the issue to be resolved once and for all, because people in my part of the world, in Perivale, are terrified about what might or might not happen; they just do not know. I urge my right hon. Friend, in pressing the Minister, to seek clarity on the funding for Crossrail, because this is not just about Crossrail; it is also about HS2.

--- Later in debate ---

[Mrs Villiers]

As I have said, we support Crossrail and are committed to it. The project is going ahead. It is vital to ensure that all assumptions about the risk that the scheme involves are tested rigorously by Crossrail Ltd to ensure that those risks are properly identified and reflected in cost estimates, and so that sensible steps can be taken to reduce them. The latest innovative value engineering techniques have the potential to reduce costs significantly, and Crossrail Ltd has already been able to identify 18% savings in overall indirect costs through measures such as reducing administrative and staff costs and renegotiating IT contracts.

[Stephen Pound]

I am grateful to the hon. Lady for giving way. She has been extremely generous, and I echo others in welcoming her to her post. I think that the least we could do is consider opening a new station adjacent to Charing Cross, perhaps in Villiers street.

Does the hon. Lady agree with one of the central points made by my right hon. Friend the Member for Greenwich and Woolwich (Mr Raynsford)—that Crossrail is not just about London but about the south-east, and the national economy? Does she agree that it is a driver for economic growth and expansion?

[Mrs Villiers]

I entirely agree that Crossrail will be a hugely important driver for economic prosperity, not just in the capital but throughout the United Kingdom economy.

Energetic work is continuing to find more efficiencies, and I am sure all Members will accept that the principles I have described are basic elements of good project management and simple good housekeeping.

Let me now turn to the important issues raised by the right hon. Member for Greenwich and Woolwich about Woolwich station. I am well aware—as, I am sure, are all who have followed the twists and turns of Crossrail’s long history—of the pivotal role that he has played. He fought a long and successful campaign to add a station at Woolwich to the Crossrail Act 2008. As he said, such a station could deliver significant regeneration benefits to his constituents and to south-east London more widely.

Let me make absolutely clear that I recognise the importance and magnitude of those benefits, that I hope we can find a solution, and that the Department and I are working hard with Transport for London in trying to find a way forward. However, a clear agreement was reached that the costs of building and fitting out the station would be borne by the private sector. That agreement limited the taxpayer contribution to the money saved because a station at Woolwich would reduce costs, given that some of the work originally included in the overall project would no longer be necessary.

In short, the plans to include a station at Woolwich have always depended on contributions from the developers who stand to benefit most from it. That was the case when the last Government took the decision to add the station to the Crossrail Act, and it remains the case under the new Government. It is abundantly clear that the debt crisis left by Labour has placed intense pressure on the public finances, so we cannot default to a position where a shortfall in the promised private sector funding for the station simply pushes up the costs for the taxpayer.