Select Committee on Transport Written Evidence


APPENDIX 9

Memorandum submitted The National Union of Rail, Maritime and Transport Workers

  The National Union of Rail, Maritime and Transport Workers (RMT) welcomes the opportunity to contribute to the Transport Select Committee inquiry "Going for Gold: Delivering Excellent Transport for London's 2012 Olympic Games".

  The RMT organises 72,000 workers in all sectors of the transport industry and negotiates, on behalf of our members, with some 150 employers. With over 44,000 members employed on the railway RMT is the largest of the rail unions.

INTRODUCTION

  The RMT is delighted that London has been chosen by the International Olympic Committee to host both the Olympics and Paralympics in 2012. The Games will not only bring world class sporting competition to the capital but also present opportunities for significant enhancements to London and the South East's transport infrastructure which should leave lasting legacies for future generations in both London and the South East as well as the rest of Britain.

CAPACITY ENHANCEMENTS

  London's transport infrastructure is in urgent need of significant capacity enhancement. Last year almost 1 billion journeys were made on the London Underground and the 10 years since 1994-95 have seen a 40% increase in mainline rail travel between London and the South East as a whole and a 22% increase in mainline rail journeys within London itself.

  In addition by 2016 London's population is projected to grow by 800,000. It is therefore self evident that existing passenger demand, the projected population increase and the 2012 Games themselves will place additional strains upon an already overcrowded transport network.

  RMT is therefore disappointed that the Crossrail project appears extremely unlikely to be ready in time for 2012. We are also concerned at the apparent lack of progress on the Thameslink 2000 project and would want to see works taken forward as a matter of some urgency. RMT also trusts that both the new Channel Tunnel Rail Link Domestic Services and Phase 1 of the East London Line Extension will meet their respective 2009 and 2010 deadlines.

  To promote sustainable transport RMT will be seeking Government, and where appropriate Mayoral, assurances that existing rail freight paths will not be unduly affected by the projected increase in passenger services which will be introduced to serve the Games.

  Additionally RMT welcome Alistair Darling's November 2004 announcement to guarantee projects designed to enhance network capacity in and around London in preparation for 2012. The projects include;

    —  The upgrade of the Chiltern Line into Marylebone Station

    —  The redevelopment of Stratford regional station

    —  Asset renewals on the C2C, West Anglia and Great Eastern, Victoria to North Kent, London to Brighton and Waterloo to Weymouth lines

    —  Signalling enhancements, platform extensions and power reinforcement on the North London Line.

    —  Signalling enhancements on the C2C route at West Ham station

    —  Platform extension and signalling enhancements on the Great Eastern line at Stratford station

    —  Infrastructure enhancements on the Lee Valley Line

    —  The provision of operational infrastructure to provide the Olympic Shuttle between the Olympic Park—Central London and Kent.

  Whilst welcoming these commitments by the Secretary of State we would point out that post-privatisation unit costs for rail enhancements have spiralled. RMT would want not want to see a situation where private contractors used the Games as another mechanism through which they extract exorbitant sums from the public purse in order to maximise shareholder dividends.

COST

  The House of Commons Library Research Paper on the Olympics Bill sets out how the £2.375 billion set aside for specific Olympic capital costs under the "Memorandum of Understanding between the Government and the Mayor of London" will be spent.


WorksCost in £000


Construction of new venues560,000
IBC/MPC construction130,000
Olympic transport infrastructure380,000
Enhanced infrastructure in the Olympic Park 350,000
Elite Sport300,000
Other costs incl, security, contingencies and inflation 650,000

Total
2,375,000




  It remains to be seen whether the money set aside for Olympic transport infrastructure will prove to be sufficient. Evidence from recent games is that costs overrun can be significant. The Athens games cost £6.3 billion; twice as much as expected.

  RMT has long argued that businesses who benefit financially from large-scale infrastructure projects should contribute towards the cost. This could be done along the lines of the "Versement Tax" which has been used to fund light-rail projects in France or through the use of hypothecated taxation similar to that used by the Metropolitan Transportation Authority in New York which targets charges on business and property owners, taxes on commercial rents, business telephone charges (and) property transfers.

  Furthermore property and land values have often soared in the wake of new transport developments. RMT believes that companies and institutions that are set benefit economically from an expansion in the transport infrastructure in preparation for 2012 should be required to make a financial contribution towards the cost of staging the Games.

LONDON UNDERGROUND

  As well as the enhancements which will be required on the mainline, London Underground's capacity and performance will be severely tested. On the passenger side LU has coped well in the past with one off large-scale events such as the Notting Hill Carnival. However RMT is less confident of good performance on the underground's infrastructure. In the past we have been critical of the Public Private Partnership on London Underground, a view which has been shared both by your Committee and its predecessor.

  RMT is particularly concerned that Transport for London's 2005 report into Year 2 of the PPP indicates that so far performance is "not good enough and is less than what was promised" and that "where renewal work is being delivered much if it is currently late."

  Under the terms of the PPP much of the renewals work is not due to begin until stage 2 in 2009. There is, as yet, no committed funding for this second 7½-year period. RMT is strongly of the view that the quality of project management thus far delivered by the Infracos will be inadequate to deal with the volume of renewals required on the London Underground in the run up to 2012. We would strongly urge that the Government quickly re-assess the whole rationale of the PPP and brings forward legislation which would allow the Mayor the flexibility to create a unified, streamlined, publicly owned and accountable underground network which we believe would be best placed to complete the necessary work on LU in good time for 2012.

 ROLLING STOCK

  The past few years have seen significant job losses in the railway manufacturing and maintenance sector at sites including Birmingham Washwood Heath, Eastleigh and Derby Pride Park and Derby Litchurch Lane. RMT is therefore extremely disappointed that the new high-speed trains for the proposed Integrated Kent Franchise will be built in Japan and not in Britain.

  However the new vehicles which will be required to cope with the extra passengers demand, for example the Olympic Javelin shuttle, presents the opportunity to begin the regeneration of the railway workshop sector. RMT would urge all parties to do everything in their power to ensure that additional 2012 rolling stock is domestically built and maintained.

SECURITY

  Following the appalling July terrorist attacks the issue of security for the travelling public on London's transport system is now even more of a key issue. RMT believes that the presence of visible well-trained railway staff is one of the essential components in sustaining public confidence in the network.

  We are therefore of the view that London Underground should begin the process of re-introducing guards across the underground network. Furthermore the Train Operating Companies on the national mainline should desist from de-staffing booking offices but should rather move to re-staff currently understaffed and un-staffed stations. Whilst fully aware that guards are unable to stop terrorists or suicide bombers they can help passengers to de-train as safely as possible in the event of an emergency by for example ensuring that they do not evacuate onto potentially live rails. This is particularly important in the event of the driver being injured or otherwise incapacitated. Visible station staff also improve the passenger's sense of security and are an essential presence if stations have to be evacuated or closed due to an emergency or other serious incident.

SKILLS LEGACY

  Inner city London constituencies suffer from some of the highest unemployment rates in Britain.


Position
Constituency % Male % Female All


5th
Tottenham 13.9%6.3%10.6%
8thCamberwell and Peckham 12.9%5.7%9.6%
9thBethnall Green and Bow 11.6%6.2%9.5%
11th Hackney South and Shoreditch 12.0%5.9%9.2%



  Source:   House of Commons Research Paper—Unemployment by constituency July 2005

  It should be clear that hosting the Games provides an opportunity to train the highly skilled work-force which will be needed to construct the Olympic venues as well as to build and subsequently maintain Olympic transport infrastructure projects. RMT is therefore firmly of the view that training schemes and apprenticeships should be brought forward which will see the development of a highly-skilled workforce in some of the inner-London constituencies where unemployment rates are disproportionately high. Such steps could prove to be one of the most valuable legacies that the 2012 London Games could leave behind.

CONCLUSION

  RMT very much welcomes the IOC decision to award the 2012 Olympic Games and Paralympic Games to London.

  RMT also welcomes commitments to enhance transport capacity in preparation for the Games and trusts that unit costs, unlike those on the West Coast Mainline, can be held at levels which do not see private sector engineering contractors securing huge profit margins. We do not believe that the PPP will be able to deliver the necessary upgrade of the London Underground and would urge the Government to intervene to scrap the scheme and return the Tube to unified public sector control.

  In order to fund the transport infrastructure projects required for the Games we would suggest that the Government considers funding streams similar to those used in France and by the MTA in New York and in addition consider a land-value tax.

  Finally the Games provide wonderful opportunities to re-establish high-skilled jobs in the railway workshop sector and to tackle the blight of unemployment in London's inner-city boroughs by training local workers in both railway construction and engineering.

September 2005





 
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