Crossrail cost overrun 'to hit new London transport schemes'

 

The cost of bailing out the overrunning Crossrail project could see a host of other transport projects in the capital put back, the chair of the London Assembly Transport Committee has said.

Speaking to Transport Network, Caroline Pidgeon said she feared that Transport for London (TfL) could be seriously hit by the additional and as yet unquantified capital costs of the delay to the £15.9bn project’s completion, as well as revenue loss from its delayed opening. The delay has already led to a further £600m bailout.

”Local
Caroline Pidgeon

She said: ‘In terms of longer-term capital investment in London, I think they are going to have to put back lots of other investment in projects, whether it’s Tube-related, DLR, and so on. I think we will start to see more pressure on all the other investments that have been promised across London because they are going to have to bail out Crossrail.

‘What I do fear is that it’s Londoners who are going to end up picking up the tab – it’s always been 50:50 between the Department for Transport and London. Londoners of course will benefit massively from this project so do places outside, including the prime minister’s own constituency of Maidenhead.

‘I would hope it would end up being 50:50 but I’m fearful it may end up being the bulk of the burden, if not all of it, falling on London and that will hit future investment in our transport network.’

Crossrail Limited, the company responsible for building the new line, is a wholly-owned subsidiary of TfL and jointly sponsored by TfL and the Department for Transport (DfT). When the line is complete, it will be run by TfL as the Elizabeth line.

In relation to the loss of revenue from the delay of around a year to the opening of the line, Ms Pidgeon said: ‘I think it’s very worrying indeed and we are expecting next week TfL’s business plan and we can see how they think they can re-profile their spending. On revenue, £200m for the full next financial year won’t be coming in.’

She added: ‘This is at the time of the perfect storm – with the Government taking away any subsidy from TfL, the mayor choosing to freeze fares, advertising revenue being down and Crossrail not opening for at least a year, so that is really significant in terms of revenue.

Ms Pidgeon told Transport Network that she felt that London mayor Sadiq Khan had misled both the Assembly and Londoners over when he knew that the project would be delayed.

Having warned last month that Mr Khan risked losing the trust of Londoners over planned changes to the capital’s bus network, she acknowledged that she was now making a similar accusation.

She said: ‘I think that people have to have confidence in their mayor. On the one hand he talks in his [transport] strategy about taking buses out of inner London for outer London – we don’t see that there.’

On the issue of oversight of Crossrail, Ms Pidgeon said: ‘What were TfL and DfT officials doing who were sitting on the Crossrail board, if they weren’t really interrogating what Crossrail were saying. People I speak to in different parts of the supply chain for Crossrail have all said they knew it wasn’t going to open on time.

”Local
Crossrail trains could be a way off

‘And when we now hear that none of the stations are ready – it was going to open next week – it doesn’t stack up. So I think there are questions for the whole structure, the governance structure, for the TfL and DfT officials who were on it.

‘And equally, there are questions about why they kept on saying it was on time – they started to drop the "on budget" because they tried to get more money – there are questions, and I have written twice now to the FCA [Financial Conduct Authority] as to whether, when the statement went to the stock market when they got additional funding from the Government in July and it didn’t mention that it was not going to open on time, whether the markets have been misled.

‘And we’ve raised that with the FCA, the FCA have written back to say they are aware of the issues, they are looking at them.‘

Register now for full access


Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.

Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors. Use the link below to register your details for full, free access.

Already a registered? Login

 
comments powered by Disqus
 
 
highways jobs

Transport Planning Officer x 2

Plymouth City Council
£32,233 to £41,846
Exciting time to join the Council and this role represents an opportunity to make a real difference... Plympton, Plymouth
Recuriter: Plymouth City Council

Business Manager - Planning Development

Newark & Sherwood District Council
£52,004 to £55,188 per annum
Looking for a suitably qualified and experienced individual to lead, manage, and develop the Council’s Development Management team. Newark, Nottinghamshire
Recuriter: Newark & Sherwood District Council

HGV Driver/Loader (Waste Management)

Torridge District Council
£22,021—£23,836 per annum (FROM 1 APRIL 2019)
Driving & loading a refuse/recycling collection vehicle up to 26 tonne gross weight, collecting recycling or household waste throughout Torridge Bideford, Devon
Recuriter: Torridge District Council

Director of Highways and Transport

Lancashire County Council
c£100k
We are looking for a passionate and energetic leader to deliver a range of ambitious and major projects. Lancaster, Lancashire
Recuriter: Lancashire County Council

Director of Growth, Environment & Planning

Lancashire County Council
c£100k
Our new Director will help us to develop a strong corporate vision, strategy and robust operations to service. Lancaster, Lancashire
Recuriter: Lancashire County Council

Head of Highways and Network Operation

Blackburn with Darwen Borough Council
£55,537 to £59,663
We are looking for an experienced transport professional with an excellent grounding in Highways and transport operations. Blackburn, Lancashire
Recuriter: Blackburn with Darwen Borough Council

Engineer Maintenance

Liverpool City Council
£32,233 - £37,107
Liverpool City Council are looking to recruit an Engineer Maintenance. Liverpool, Merseyside
Recuriter: Liverpool City Council

Site Supervisor

Liverpool City Council
£32,233 - £37,107
Liverpool City Council wish to appoint Site Supervisors to supervise the City Council's highway construction works. Liverpool, Merseyside
Recuriter: Liverpool City Council

Permit Officer

Liverpool City Council
£23,111 - £27,358
Liverpool City Council are looking to recruit a Permit Officer. Liverpool, Merseyside
Recuriter: Liverpool City Council

Contracts Manager

Liverpool City Council
£37,107 - £41,846
Liverpool City Council wish to recruit a Contracts Manager based in Highways & Transportation. Liverpool, Merseyside
Recuriter: Liverpool City Council

Principal Engineer - Asset Management

Liverpool City Council
£37,107 - £41,846
Liverpool City Council wish to recruit a Principal Engineer - Asset Management. Liverpool, Merseyside
Recuriter: Liverpool City Council

Highways Inspector

Liverpool City Council
£32,233 - £37,107
We are seeking to recruit an enthusiastic individual to be a key member of our Highways Team. Liverpool, Merseyside
Recuriter: Liverpool City Council

Engineer - Capital Projects

Liverpool City Council
£32,233 - £37,107
Liverpool City Council is looking to recruit an Engineer - Capital Projects. Liverpool, Merseyside
Recuriter: Liverpool City Council

Engineer - Highways Capital Projects (S106)

Liverpool City Council
£32,233 - £37,107
Liverpool City Council wish to recruit an Engineer (Capital Projects). Liverpool, Merseyside
Recuriter: Liverpool City Council

Team Leader - Asset Management

Liverpool City Council
£41,846 - £46,560
Liverpool City Council wish to recruit a Team Leader - Asset Management. Liverpool, Merseyside
Recuriter: Liverpool City Council

Technical Assistant

Liverpool City Council
£23,111 - £27,358
Liverpool City Council are looking to recruit a Technical Assistant. Liverpool, Merseyside
Recuriter: Liverpool City Council

Waste and Recycling Engagement Officer

Camden London Borough Council
£24,460 - £26,358
We now have an exciting opportunity for a talented and enthusiastic individual to join us and be part of the North London Waste Authority (NLWA). Camden, London (Greater)
Recuriter: Camden London Borough Council

Major Transport & Development Projects - Strategic Specialist

Wiltshire Council
£51,763 - £57,066
Wiltshire has a highly regarded record of securing funding and delivering major transport improvements across all modes of travel. Wiltshire
Recuriter: Wiltshire Council

Assistant Director - Growth and Development

Lincoln City Council
£59,058.00 - £65,127.00
Looking for an experienced manager with a good track record in proactively driving economic growth and investment. Lincoln, Lincolnshire
Recuriter: Lincoln City Council

Assistant Director – Transport and Connectivity

Birmingham City Council
£73,513 - £90,864
This is one of a number of influential new senior roles for collaborative people, motivated by doing what’s right for our city and residents. Birmingham, West Midlands
Recuriter: Birmingham City Council