Supplementary memorandum submitted by
London and Continental Railways Ltd
I would like to clarify three points arising
from the Committee's hearing on Wednesday l9 October.
First, Gwyneth Dunwoody specifically requested
clarification on the running of Integrated Kent Franchise services
during the Games. As you know the Franchise has yet to be awarded,
with the DIT currently responsible for the tender. It will ultimately
be for the operator of the Franchise to determine which services
operate during the Games. LCR5 understanding is that Integrated
Kent Franchise trains will not be operating during the Games as
the rolling stock will be used for the Javelin service. This will
mean the fleet of trains can be reconfigured to transport passengers
as rapidly and efficiently as possible to and from the Olympic
park.
The second point relates to Graham Stringer's
question regarding the necessity of further public investment
in the LCR Group given the funds that can be realised from commercial
opportunities. The National Audit Office Report in July 2005 estimated
that an additional £260 million of public investment may
be needed through to 2051. LCR considers this figure is a fair
and accurate estimate of the money that may be needed, noting
that it has not changed since the NAO report of 2001. Whether
any further subsidy is needed is of course dependent on the progress
of our business interests, but we do not believe it likely to
change significantly with current business forecasts. The expected
returns from the commercial development of land along the route,
notably at King's Cross and Stratford, are taken into account
in the calculation of the £260 million. This helps reduce
the pressure on the public purse as it enables LCR in its business
planning to offset reliance on public money. The realisation of
investment in such lands enables LCR, and its partners, to offset
the losses that have accumulated in the business to date. Costs—already
incurred—preclude the company from "handing back"
any lands to the LDA for the development of the Olympic Games
without appropriate levels of compensation.
The final point refers to the questions the
Committee had about the link between Stratford station and Stratford
International.
The Committee will be aware that the Docklands
Light Railway (part of Transport for London) submitted in August
proposals for an extension to Stratford International. The Government
will decide by late 2006 whether to approve the project. If it
is approved, the project will open in early 2010. LCR holds the
view that the DLR extension offers the best integrated transport
solution in connecting Stratford Station with Stratford International.
If the Government decides against the DLR extension, there will
still be time to consider other ways to meet the planning obligation
for a link between the two stations.
27 October 2005
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