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Proceeding contribution from Brian Binley (Conservative) in the House of Commons on Thursday, 13 December 2007. It occurred during Debate on bill on Crossrail Bill.


Crossrail Bill

I pay tribute to the hon. Member for Leicester, South (Sir Peter Soulsby), who has proved to be a wise and experienced counsellor on matters of this kind. I am sure that his local government experience created that ability. I also pay tribute to the Chairman of the hybrid Bill Committee, the hon. Member for Mansfield (Mr. Meale), who led us with humour, gentleness and kindness, and managed to keep our interest going when most of us were flagging. His work ought to be recognised, and tribute should be paid to it. Sadly, I cannot share the confidence and enthusiasm expressed by my hon. Friend the Member for Wimbledon (Stephen Hammond), for I have sizeable doubts. In my defence, I will add only that I had those doubts before the scheme began, and the work that I did in Committee did not change that; indeed, it rather strengthened my doubts, which relate to three specific issues. I am concerned about what I consider to be the poor costing regime used for the project to date, and referred to numerous times both in Committee and in the Bill; I fear that Crossrail will remove the focus from vital projects in other parts of the United Kingdom; and I am shocked at the lack of any attempt to put a cost on the blight and disruption that has been caused to London so far. Yet here we are, making a final decision. All those matters have a direct impact on the end cost of the Bill and the economic return of the scheme. It strikes me as disturbing that we should make decisions in that financial environment, and I think that the next hybrid Bill should make it possible for us to consider those matters as well. That we have not been able to do so on this occasion seems to me to be a major oversight. I realise that it could have been slightly embarrassing for the Government, but preventing embarrassment for the Government is not the purpose of a hybrid Bill or indeed of this place. I should like my opinion to be recorded, and to be considered for the future. The poor cost accounting for the project became obvious to me as the hybrid Committee’s deliberations continued, in two contexts. The first was floating track. More and more of it was demanded by petitioners and promised during our consideration, but the figures given for the amount of floating track and the increased cost that it would entail were extremely vague. I think it unacceptable that the House should make a final decision without an understanding of the true impact of those factors. My real concern, however, relates to Woolwich station. If the project goes ahead, that station is vital. As was pointed out by the right hon. Member for Greenwich and Woolwich (Mr. Raynsford), the need for regeneration in the area is equally vital. The first estimate of the cost of a station was £350 million. I gained the impression that the cost had been pitched very high because the promoters did not want the station. As we whittled away at the problem, however, the estimated cost fell to £200 million. By 31 October it was £186 million, and the final cost turned out to be about £172 million. If that is an example of the costing used for this project, I despair. It does not give me much confidence. As for my fear that the focus will be removed from other projects, the Financial Times has already made the point that Crossrail covers roughly the distance between Leeds and Manchester but a northern Crossrail has not been considered, although it could have a tremendous impact on the whole economy of the north, an area on which the Government say they wish to make an impact. Many people would say that such a project could be implemented at a considerably lower cost than Crossrail. There are many other examples. The truth is that London has attracted many major infrastructure projects, and the rest of the country is deeply concerned about how much resource and finance will be left for their own particular projects and concerns. Let me turn to the important matter of the final costings. Many Government schemes lead taxpayers to despair: the initial price is very acceptable, and we make the decision on the basis of that acceptable price, and we then find to our horror that the final cost has doubled or trebled—and sometimes it is four times as great as the initial estimate. I do not wish to embarrass the Government too much.


Secondary information

Type
Proceeding contribution
Reference
469 c561-2 
Session
2007-08
Chamber / Committee
House of Commons chamber
Subjects
Access Disclosure of information Compensation Compulsory purchase Construction Elizabeth line Crossrail Finance Land Environment Infrastructure Freight Planning permission Railway stations Railways Railway network Reading (Berkshire) Underground railways Regeneration Woolwich Maidenhead Office of Rail Regulation
Legislation
Crossrail Bill 2004/05 to 2005-06 to 2006-07 to 2007-08
Link
View this Proceeding contribution on www.publications.parliament.uk