Crossrail

Debate between Theresa Villiers and Nick Raynsford

Thursday 3rd June 2010 Commons Chamber

[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.

[Mr Raynsford]

While I understand entirely the basis on which the agreement was reached in 2008, does the hon. Lady recognise that what has happened subsequently in the housing market has inevitably impacted on Berkeley Homes, the developer, whose contribution is critical to delivering this? While not asking for public contributions, I did specifically encourage flexibility on the part of the Government, to make it possible to reach an agreement with Berkeley Homes that is affordable for the company. The Secretary of State agreed in his letter to me that that was the Government’s objective. Will the hon. Lady tonight confirm that they will try to get an agreement on that basis?

[Mrs Villiers]

I want to set this out very clearly. The private sector contribution was pivotal to the station getting the go-ahead when the decision was made to add it to the Act, and it remains so. The Government cannot offer additional taxpayers’ money over and above what has been agreed within the current funding programme to replace the shortfall in the private sector contribution that Berkeley Homes promised to provide. However, we can seek flexibility in other areas, as the Secretary of State outlined in his letter.

Both the Department for Transport and Transport for London stand ready to help broker an alternative solution among interested parties to try to address the funding problems. Both the sponsoring bodies have been in extensive discussions with Berkeley over the past year, to seek a way to enable the company to honour its commitments. They have written to me only today with more constructive ideas. Naturally, one of the most significant of those interested parties is the London borough of Greenwich. In this regard, it is important to assess whether development opportunities around the station and the alternative funding that they might generate have been fully explored.

I know that Greenwich council is actively engaged in the issues that we have discussed this evening. It is now important for all of us who care about Crossrail to assess thoroughly the possible alternative funding sources that could be available between the interested parties if Berkeley Homes does not step up to the plate and deliver what it promised. Therefore, while I cannot promise additional funding from the Department and the taxpayer, we do stand ready to try to help the interested parties find a solution to enable Woolwich station to go ahead. The right hon. Gentleman can have my absolute assurance on that.

I would like to mention briefly some of the wider issues that the right hon. Gentleman raised about transport in his constituency. He warmly welcomed a number of the recent improvements, and it is worth noting that several important programmes in recent years have benefited his constituency, such as the refurbishment of the East London line as part of the London overground network, new interchanges with the tube and bus networks, and the extension of the docklands light railway, which the right hon. Gentleman described with such eloquence.

I thank all Members who have taken part in the debate, especially the right hon. Gentleman. I believe that it has provided a valuable opportunity to consider important issues around the Crossrail project in general and its impact on his constituency in south-east London in particular. After long years of waiting, the commencement of work on Crossrail was warmly welcomed, particularly within the business community, where Crossrail has always enjoyed strong support. The CBI recently made it clear to the Secretary of State that it is pleased to see progress continuing under the new Government.

I should like to take this opportunity, on behalf of the Government, to thank the Canary Wharf Group, BAA plc, the Corporation of London and its members for the considerable financial contributions that they are making. I am sure that we would all like to express the same gratitude to the other businesses in the capital whose rate supplements are providing a hugely important element of the funding package.

This project has the potential to deliver significant economic, social and environmental benefits for the capital and for the country. Those benefits will be felt well beyond the areas directly served by the new line and its stations. The challenge facing all of us who are interested in Crossrail is to ensure that costs are kept down. That means engaging in an active, energetic pursuit of best value for money procurement processes, urgently seeking ways—