Select Committee on Transport Minutes of Evidence


Examination of Witnesses (Questions 340-359)

MR RICHARD CABORN MP, MS KAREN BUCK MP AND MR BEN STAFFORD

9 NOVEMBER 2005

  Q340 Mr Martlew: Does that say that we are not going to be bringing people in from abroad?

  Ms Buck: If you look at all the major construction projects that are going on all over the country, of course you are using skills, some of which are being brought in from abroad. We are not looking at a scenario where in 2011-12 you are going to be needing a massive workforce to complete your transport projects. That is absolutely integral to the way this transport delivery has been planned. It is phased over a very long period of time and it is primarily utilising a transport investment programme that was already planned for London's benefit.

  Q341 Mr Martlew: If I can go back to the Jubilee Line and the Dome, because there was a deadline, there was a cost over-run and the people working on the line knew it had to be completed. There is a concern already. Transport construction costs are rising and we will be in a situation where, because we need to have it ready by the Olympics, the costs will even rise further. If that is the case, who is going to pay for this?

  Ms Buck: It is a question of phasing in the construction of those improvements over the course of a very long time. There has been a recent report by a team of quantity surveyors looking at that issue and the possibility of pressures as a consequence of the programme. It concluded that, for exactly the reasons I have outlined, that is not any significant risk. On the Jubilee Line, you have the seventh car upgrade this Christmas. You have an up to 45% increase in capacity on the Jubilee Line by 2009 and a programme of improvements rolling through year by year from now on. That does make a very fundamental difference. To compare that with the Dome would be fundamentally misleading.

  Mr Caborn: We visited a lot of cities that had run the Olympics and they said, first of all, get the land, get planning. What you do in the first two years of running the Games is absolutely crucially important to the delivery seven years down the line. That is why on 14 July we introduced the Olympics Bill which had been drafted even before 6 July, before we won the bid. We have been working with the LDA to make sure that we acquire the land. I give credit to all the local authorities in that area because we got outline planning well before we had won the Olympics. We had put quite a lot of this in place even before we knew the decision on 6 July. I think that will pay a lot of dividends because we do not want to get into crisis, when we get to the end date in 2012. The classic example of that was Athens when they had some real difficulties that cost huge amounts of money because it got into crisis management. We are determined not to do that. That is why we have done what we have done. That is what the ODA is there for. That is what LOCOG is there for.

  Q342 Mr Martlew: You have not answered the question about who is going to pay if it does over-run. I have declared an interest that I live in Greenwich. The transport system from that part of London is very good in comparison with many constituencies in the country. How do you justify improving it even more just for the Olympics?

  Ms Buck: The overwhelming bulk of the transport package—I can hear snorting from Mr Efford—in the Olympic bid comprised proposals that improved transport provision anyway. On top of that, there is a layer of specific Olympic funded modifications which are running—additional trains and so forth—to deliver the spectators to the Games.

  Q343 Mr Clelland: Regarding what the Minister said about some of these transport infrastructure projects being underway anyway, regardless of the Olympics, one of the great benefits of the Olympics, we have all been told, is that it will create a huge number of jobs in construction over the period. We have heard what has been said about retraining etc., but what danger is there that we will see, in so far as this country is concerned, let alone people coming from abroad, a drain on skills in construction in the regions? How will that affect the regions over the period?

  Mr Caborn: One of the big construction projects, just under £5 billion, is now coming to an end and that is terminal five. Some of the skilled personnel employed there could well be coming over to start on this construction. I was talking to CITB and they told me it would only increase by about 2.5%, the workforce in construction, over the period because of the vast amount of work that is already going on, which is huge in terms of that investment. This is one of the issues we have taken up. We believe in upskilling. There are massive pockets of unemployment in the East End of London. We are trying to get into those pockets to retrain and train. That is what we are trying to do through the London Development Agency.

  Q344 Mr Clelland: If the construction costs because of the Olympics do rise in terms of transport, how is this going to affect local transport plans? Will they still be adequately funded? There may be some local transport plans related to the Olympics.

  Ms Buck: If you are asking me: if there is a cost over-run despite everything that has been built in in terms of bearing down on costs, which I feel absolutely confident about, will that lead to a withdrawal of money from your constituency, the answer is no. There was a contingency built in, as there would always be for any scheme of this size, and underlying that there is a memorandum of understanding which ensures that, in the event of cost over-run, it would be shared between the Mayor and the National Lottery fund.

  Q345 Mr Clelland: I was not asking so much about the normal, standard, local transport plans that local authorities develop but plans that they might specifically have to develop in order to get enough transport because of their involvement with the Olympics, these training camps etc.

  Ms Buck: So much of this is building on a transport plan which was underway already. The Mayor of London is underway with a £10 billion, five year transport investment programme. So much of what is being put into the Olympics is already part of that, or indeed some of the other transport infrastructure like the Channel Tunnel Rail Link which is due to be completed in 2007, which further underpins the argument that this is a phased delivery of projects which means that skills bottlenecks are not likely to be on the scale that you are fearing.

  Q346 Clive Efford: Mr Martlew is in the peculiar position of having lived in my constituency and now lives in the north of Greenwich. He now enjoys far better transport links than he experienced in my constituency. The peninsula, for instance, at Greenwich is going to be a major construction site and it is going to prove a number of venues for the Olympics. If you were to leave the Dome today—we have had the Jubilee Line at north Greenwich for more than five years—you could get to St John's Wood and be in your comfortable flat in St John's Wood overlooking Lords Cricket Ground by public transport more quickly than you could get to the high street in my constituency in the same borough as the Dome. That, to me, is an absolute disgrace. We are investing an enormous amount of money in large infrastructure projects but what are we doing to widen out the benefits of those projects so that people from my constituency—I am in the peculiar position that I can see this because I am just on the edge of the Thames Gateway development area—can access the jobs now, the construction jobs that are going on now that they need to access to benefit from this regeneration? What are we doing about that?

  Ms Buck: You are a fearless champion of improved transport access to south east London. That is in danger of straying beyond the Olympics into how do we improve transport in south east London. That is part of the transport for London general planning of improving accessibility across the capital. We know, do we not, that that is exactly why we were very pleased to be able to deliver the investment programme to the Mayor. There are parts of London, of which south east London is probably the top, and parts of east London where the Olympics are going to be sited, which are extraordinarily badly connected for a modern capital city. So much of what is going on in terms of the DLR extension, the upgrading of the East London Line and the North London Line, is about improving transport links into an area which, although it is inner London, as you say with your example, could be hundreds of miles away in terms of how hard it is to connect.

  Q347 Clive Efford: As you know, this is an issue that gets under my skin more than most. The fact is that the legacy of the Olympic Games is a large part of the bid. The Olympic Committee looked for sustainability. At the same time as we are seeing this regeneration taking place before our very eyes now—and we would be foolish not to welcome all the large infrastructure projects that we are investing in, in that part of London; I accept that they are necessary—if they are not immediately accessible, how do we think that second phase through to make sure that even now, before these infrastructure projects are completed, people can travel to the Thames Gateway are where there are large amounts of employment opportunities? What are we doing to address that now, talking to TFL about bus routes etc?

  Ms Buck: I cannot say to you that I am conscious of there being a TFL or pre-Olympic plan for specific transport programmes to deliver people from, say, south east London to the jobs in the major infrastructure projects and to the Olympics. If that is something that you feel is a very distinct gap and you are conscious of there being estates or neighbourhoods that a particular small, transport programme—

  Q348 Chairman: I do not think the point is being made about a specific estate. The point being made is that that part of London needs to have efficient transport links.

  Ms Buck: Of course. I completely agree. We have a programme of major infrastructure projects and, try as we might, we cannot bring them forward.

  Q349 Chairman: You have just been telling us how well you are coordinated. All we require is a clear statement of how those coordinations are going to work beyond the immediate rather projected, tightly controlled Olympic areas.

  Ms Buck: We will take that point away to see if there is something we can look at in conjunction with the LDA of particular interest in terms of skills and employment.

  Chairman: Perhaps you would give us a note on that too.

  Q350 Mr Scott: Do you think it is possible for Crossrail construction to take place at the same time as the other Olympic transport projects?

  Ms Buck: Yes. Crossrail was never part of the Olympics delivery plan. The earliest that Crossrail would be delivered is 2013. Knowing that as we do and having as detailed specification on construction works as we have, we are absolutely confident that, should that go ahead, the two can be delivered together.

  Q351 Mr Clelland: Do you think that the effects of the Crossrail project in terms of its construction, dust, pollution and everything else, will affect the Games?

  Ms Buck: No. The team of people delivering and planning Crossrail are looking at the transport infrastructure projects which, for the most part, are within TFL and the major construction projects on the CTRL, are very conscious of how these schemes would need to interact should those construction projects be running alongside one another.

  Q352 Mr Clelland: We will have huge boring machines boring tunnels. There is going to be a huge amount of dust and waste carried about all over the place while the Games are going on, is there not?

  Ms Buck: I have absolutely no doubt whatsoever that, were we to be at a critical point of Crossrail construction during the time that the sports are going on, it would be possible to work out a programme to make sure that we did not have dust and lorries at critical places and at critical times during the Games.

  Q353 Mr Goodwill: In relation to the Arup report, I am sure you are being very wise in drawing lessons from Athens where there was a lot of very tacky paint around at the start of the Olympics and cost over-runs, for example, in relation to the Dome or dare I mention the World Student Games in Sheffield. The Arup report is a report that this Committee has consistently tried to get hold of and we have only so far had the executive summary. Is it that this report is now past its sell-by date and no longer relevant? If so, is it possible we could have a timetable in terms of reaching particular targets by particular dates and the budgeting, because you already mentioned the possibility of cost over-runs. I think most people rather expect the Olympics to over-run. We need to have an early indication if that is likely to happen.

  Mr Caborn: It is a DCMS report. We will try and give you as much information as possible. If we give you the full report, there is a lot of confidential information in it but I have no doubt there are rules about who can have access to that. If it is germane to your inquiry, we will try and give as much information as possible to you.

  Q354 Chairman: We would like the answer to why, when you were asked under the Freedom of Information Act for access, you said that you had not decided whether it was in the public interest to release the information. Have you come to that conclusion yet?

  Mr Caborn: No. We are currently still examining the report as to whether the information might be released into the public domain.

  Q355 Chairman: You would be prepared to offer it to us on the basis of confidentiality?

  Mr Caborn: I will take that away and I think we will be able to accommodate the Committee in that sense.

  Q356 Mr Goodwill: The second question relates to a perception which is emerging certainly in Yorkshire—it may well be round the country as well—which is linking, for example, the cancellation of a road project in my constituency or the cancellation of the Leeds super tram scheme to the Olympics. Could our Transport Minister comment on this because it does seem that certainly the regional press are latching on to this. Is there any truth in these worries?

  Ms Buck: There really is not any truth in it. The Olympics transport plan has been fully costed, assessed in its own right and very much of it is already in plans which build on existing projects: the CTRL, the transport for London's ten year delivery plan. That is not in any way influencing the delivery of projects in other parts of the country. Each major programme in other regions or if they were to be in London would need to stand on its own merit and demonstrate value for money amongst other objectives. The budgets for that are separate and ring fenced away from the Olympics.

  Q357 Mr Leech: Would you not accept though that there is a public perception that schemes throughout the country including Metrolink in Greater Manchester, for instance—the £900 million was considered to be too expensive—yet when a scheme in London comes along something like Crossrail for instance, that is going to cost 10 billion or a round figure like that, that is considered perfectly reasonable? Money appears to be being thrown at London transport initiatives but not at ones throughout the regions.

  Ms Buck: There is now and has always been a healthy and creative tension between London and the regions.

  Q358 Chairman: You will not mind if those of us who are not part of that regard that as a slightly sophisticated interpretation of everything goes to the south east and the rest of us get the crumbs.

  Ms Buck: Those are your words, not mine. I do accept that perception is there. I do not accept that perception is real. As a government, we have two duties to run alongside each other, one of which is to make the best use of the opportunities for economic growth, which include the role London and the south east have as drivers in the economy; and, secondly and very explicitly, to grow the economy in the regions. Transport has a critical role in that which is why this summer we announced the indicative allocations for the major projects for the regions which include the transport, housing and economic development resources. I am conscious of the fact that Londoners and people living in the regions always feel, possibly not unreasonably, that there should always be more done.

  Q359 Mr Leech: Is it not the case that, if Crossrail were suddenly to jump from ten billion to 14 or 15 billion, you would still be looking to fund that, whereas other schemes that have suddenly become more expensive have been cancelled?

  Ms Buck: At the moment, we are examining ways in which Crossrail can be funded and the basis of the cost profile we have. If that changed, who knows?

  Mr Scott: Just to redress the balance, as a London constituency MP obviously welcoming Crossrail, as you quite rightly said, there is no funding there at the moment. There is still a question mark for how it is going to be funded. This service, which admittedly we are not here to discuss today, is vital as a cross-London link.


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2006
Prepared 16 March 2006