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18 Jun 2007 : Column 1451W—continued
Blue Badge Scheme: Children
Mrs. Maria Miller: To ask the Secretary of State for Transport what representations his Department has received on the consultation on extending the Blue Badge disabled parking scheme to include children under two years of age. [143700]
Gillian Merron: The Department is proposing to extend the eligibility criteria for a Blue Badge to children under the age of two with specific medical conditions.
The consultation exercise is due to finish on 19 June and the replies will be analysed after that date.
Eurostar: Ashford Kent
Gregory Barker: To ask the Secretary of State for Transport what representations he has had from local interest groups regarding the Ashford International Eurostar service in the last 12 months. [143146]
Mr. Tom Harris: I refer the hon. Member to my answer of 14 June 2007, Official Report, columns 1270-1W.
FV Gaul Inquiry
Mrs. May: To ask the Secretary of State for Transport what the cost was of the FV Gaul Inquiry. [143714]
Dr. Ladyman: The total cost to the Department of the Re-opened Formal Investigation (RFI) was approximately £6.5 million.
FV Trident Inquiry
Mrs. May: To ask the Secretary of State for Transport what the estimated cost is of the FV Trident inquiry; who has responsibility for chairing the inquiry; and when he expects it to report. [143719]
Dr. Ladyman:
Estimates for the total cost of the Trident RFI are around £2 million. The Sheriff Principal for Grampian, Highland and Islands will be
chairing the inquiry. The timing of the inquiry is dependent upon the production of technical evidence required by the experts advising legal parties, and the report will follow thereafter.
Galileo Project
Mrs. Dunwoody: To ask the Secretary of State for Transport what the overall change in the projected cost of the Galileo Satellite Navigation System was in each of the last three financial years; what assessment he has made of the impact of those changes on the business case for the project; and if he will make a statement. [140413]
Dr. Ladyman: Galileo is a European Community project which the Government accept should be managed at European level.
The EU, and member states of the European Space Agency (ESA) jointly fund the design and development programme for Galileo. The ESA estimate for the cost of the development phase (in orbit validation or IOV) has increased by €136.7 million, in 2001 prices, over the last three years:
cost in 2005: €1,557.4 million (€1,452.0 million in 2001 prices);
cost at March 2007: €1,788.4 million (€1,588.7 million in 2001 prices).
At the last meeting of the ESA programme board which deals with Galileo, in May 2007, the ESA executive informed its member states that it is assessing issues which may affect the costs of the programme. These relate to the contracts for the second test satellite, GIOVE-B, and the IOV phase. They were not yet able to define the costs.
The Nice European Council of December 2000 decided on a public private partnership (PPP) for the deployment and operation phase. This was to be one- third EC, two-thirds private funding, with a 20-year concession.
The draft EU Financial Regulation currently allocates €900 million, at 2004 prices, towards the deployment and operation of the system.
On 8 June Transport Council Ministers concluded that the current negotiations have failed. The Commission has been requested to submit to the October Council for decision detailed alternative proposals for taking the project forward. These should be based on an additional thorough assessment of costs, risks, revenues and timetable. The need for competition in a procurement strategy has been emphasised. The Commission was also requested to bring forward proposals for strengthening the public governance of the programme. The UK, jointly with the Netherlands and supported by Slovakia and Cyprus, submitted a minutes statement stressing our commitment to the PPP principle for major infrastructure projects, our concerns on the potential increased costs of public procurement, the need for a reassessment of the business case for Galileo, competitive procurement, sound risk management, and ensuring that any extra funds are kept within the current EU financial perspective. The cost of this phase will not be known until Council makes that decision.
The European Commission's Communication of 16 May 2007 does not provide an assessment of the impact of cost changes on the business case for the project.
Mrs. Dunwoody: To ask the Secretary of State for Transport (1) what the expected cost-benefit ratio of the Galileo Satellite Navigation System was in (a) 2004-05, (b) 2005-06 and (c) 2006-07; [140414]
(2) what limit the UK Government have set for (a) the maximum level of funding that it would approve for the Galileo project and (b) the cost-benefit ratio at which it would withdraw its support for the project. [140415]
Dr. Ladyman: No annual cost-benefit ratios have been produced by the Commission. Cost information has been updated from time to time. At the beginning of the programme, the Commission engaged Price Waterhouse Coopers. Their report of November 2001 identified a positive benefit-cost ratio of 4.6:1.
The conclusions of the December 2004 Transport Council asked the Commission to submit a reasoned analysis of the results of the public private partnership (PPP) negotiations, including on risk allocation and final costs, before any final decision was made. The UK, supported by Austria, entered a minutes statement stressing the need for the proposed risk and cost allocations between public and private sector to be acceptable to Council.
In spring 2006, three studies were commissioned by the Galileo Joint Undertaking (GJU) and reported to member states at the GJU Supervisory Board. The studies covered revenues, costs, and the value for money of the satellite procurement: no overall cost-benefit analysis was produced.
The most recent Commission Communication, 16 May 2007, sets out 23-year net present values (NPVs) of:
(i) €1.8 billion for a PPP as foreseen, except that four of the deployment satellites would be procured by the public sector, as risk mitigation; and
(ii) €2.2 billion for the public procurement of 18 satellites, with a further 12 purchased by the private sector; and
(iii) €1.0 billion for the public procurement of 30.
On 8 June Transport Council Ministers concluded that the current negotiations have failed. The Commission has been requested to submit to the October Council for decision detailed alternative proposals for taking the project forward. These should be based on an additional thorough assessment of costs, risks, revenues and timetable. The need for competition in a procurement strategy has been emphasised. The Commission was also requested to bring forward proposals for strengthening the public governance of the programme. The UK, jointly with the Netherlands and supported by Slovakia and Cyprus, submitted a minutes statement stressing our commitment to the PPP principle for major infrastructure projects, our concerns on the potential increased costs of public procurement, the need for a reassessment of the business case for Galileo, competitive procurement, sound risk management, and ensuring that any extra funds are kept within the current EU financial perspective.
The Government have not set either a maximum level of funding that they would approve for the project, or a cost-benefit ratio at which they would withdraw their support. The latest information from the European Space Agency is that costs of the development phase
are €1778.40 million to date (2007 cash terms). The draft EU Financial Regulation allocates €900 million, at 2004 prices, to the deployment phase.
The Government are strongly committed to the existing budget ceilings and to ensuring that there is no reopening of the Financial Perspective. The principle that member states would not be required to fund Galileo from national budgets for the deployment and operational phases of the programme was agreed at the March 2002 Transport Council. The Government remain committed to this principle.
Mrs. Dunwoody: To ask the Secretary of State for Transport (1) what return he expects to receive on the UK's contribution to the Galileo project; and how it will be calculated; [140417]
(2) what evaluations he has made of the market opportunities and applications of Galileo; when those evaluations were made; and when they were last revised. [140500]
Dr. Ladyman: No calculation of UK return has been made for the programme as a whole.
ESA operates an industrial policy that provides for a geographical return based on member state contributions. The UK commitment to the ESA element of the design and development phase of the programme is €142 million. The value of contracts awarded to UK companies up to 15 May 2007 was €212.7 million.
The EU's contribution to the design and development phase is made from the EC budget and is estimated by the Commission to be €790 million. The UK makes its contributions to the EC budget as a whole and not to individual spending programmes within it.
There is not an identified UK contribution to the design and development phase of the programme via the EU budget.
The Government expect benefits from their investment in Galileo for companies that provide space technology and services, and for companies that exploit the technology in downstream applications. A study commissioned by the British National Space Centre (BNSC) in 2005 evaluated the economic impact of Galileo in the UK. It identified benefits for space segment industries and for downstream services and products.
Mrs. Dunwoody: To ask the Secretary of State for Transport (1) what the total cost is of the full number of satellites proposed under the Galileo project; how many there are at the moment; and how many are planned in the future; [141065]
(2) how many Galileo satellites will be purchased by the European Commission on behalf of the European Union under the new programme; and what percentage of the cost of a re-programmed and re-financed Galileo will be borne by the UK. [141053]
Dr. Ladyman: The Galileo global constellation is expected to comprise 30 satellites. The Commission has based its assessment and its proposals to the Transport Council on the provision of 30.
A first test satellite, GIOVE-A, was launched in December 2005 and is providing operational signals. A second test satellite, GIOVE-B, has been delayed and is scheduled to be launched by end 2007.
On 8 June Transport Council Ministers concluded that the current negotiations have failed. The Commission has been requested to submit to the October Council for decision detailed alternative proposals for taking the project forward. These should be based on an additional thorough assessment of costs, risks, revenues and timetable. The need for competition in a procurement strategy has been emphasised. The Commission was also requested to bring forward proposals for strengthening the public governance of the programme. The UK, jointly with the Netherlands and supported by Slovakia and Cyprus, submitted a minutes statement stressing our commitment to the PPP principle for major infrastructure projects, our concerns on the potential increased costs of public procurement, the need for a reassessment of the business case for Galileo, competitive procurement, sound risk management, and ensuring that any extra funds are kept within the current EU financial perspective. The timetable for the programme, its funding, and its organisation are subject to these decisions at Council.
Mrs. Dunwoody: To ask the Secretary of State for Transport what plans there are to strengthen the GNSS programme as referred to in the European Commission communication COM (2007) 261 of 16 May 2007; and by what mechanisms it will be strengthened. [141153]
Dr. Ladyman: In its Resolution of 24 April 2007, the European Parliament called on the Commission to:
“make a proposal—together with the European Space Agency (ESA)—capable of solving the problem of better public governance by ensuring clear political responsibility and leadership on the part of the Commission.”
The Commission Communication of 16 May 2007 refers to this request. The Communication proposes that the Commission be asked to bring forward proposals for stronger public governance of the project with clearer divisions of responsibility between the Commission, ESA and the European GNSS Supervisory Authority (GSA). On 8 June 2007 Transport Council asked the Commission to submit in September proposals for
“a sound public sector management structure of the programme on the basis of a clear division of responsibilities between Commission, ESA, GSA, member states and Council”.
Mrs. Dunwoody: To ask the Secretary of State for Transport what the scope is of the European Union EGNOS programme; what the timetable is for its implementation; what its cost will be to the UK; how the programme is regulated; which British (a) nationals and (b) firms are involved in this initiative; and if he will make a statement. [141154]
Dr. Ladyman: The European Geostationary Navigation Overlay Service (EGNOS) is a satellite based augmentation system (SBAS) that will augment the two satellite navigation systems now operating, the US Global Positioning System (GPS) and the Russian Global Orbiting Navigation Satellite System (GLONASS) systems, and make them suitable for safety-critical applications such as flying aircraft or navigating ships through narrow channels.
It is a joint project of the European Space Agency (ESA), the European Commission and Eurocontrol (the European Organisation for the Safety of Air Navigation), with the involvement of the principal European Air Traffic Service Providers, including NATS plc. The programme is regulated as an ESA programme under its ARTES 9 programme. The integration of EGNOS into the Galileo programme was decided by Transport Council in its conclusions of June 2003.
The programme funding currently provides for the development and operation of the system by ESA until 31 March 2008. Arrangements and the funding of EGNOS after March 2008 are unlikely to be decided until the October 2007 Transport Council.
The ARTES 9 programme of ESA is funded by subscriptions from its member states. The European Community also contributes as have the principal European air traffic service providers. Since the start of the programme, UK contributions to ESA have been almost €35 million.
This industrial sector is international in nature but prominent firms operating in the UK that have been awarded contracts by ESA include British Telecommunications, Inmarsat UK, LogicaCMG UK, Thales (UK), and Vega UK.
Accordingly, accurate information on all specific British nationals and firms that have been involved in this initiative would be difficult to provide and only at disproportionate cost.
Galileo Project: Finance
Mrs. Dunwoody: To ask the Secretary of State for Transport what estimate he has made of the (a) cost and (b) merits of funding the Galileo project through (i) public and (ii) private finance. [141149]
Dr. Ladyman: Galileo is a European Community project which the Government accept should be managed at European level.
The most recent Commission Communication, 16 May 2007, sets out 23-year net present values (NPVs) of:
i. €1.8 billion for a PPP as foreseen, except that four of the deployment satellites would be procured by the public sector, as risk mitigation; and
ii. €2.2 billion for the public procurement of 18 satellites, with a further 12 purchased by the private sector; and
iii. €1.0 billion for the public procurement of 30.
On 8 June Transport Council Ministers concluded that the current negotiations have failed. The Commission has been requested to submit detailed alternative proposals for taking the project forward to the October Council for decision. These should be based on an additional thorough assessment of costs, risks, revenues and timetable. The need for competition in a procurement strategy has been emphasised. The Commission was also requested to bring forward proposals for strengthening the public governance of the programme. The timetable for the programme, its funding, and its organisation are subject to these decisions.
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