Select Committee on Crossrail Bill Minutes of Evidence


Examination of Witnesses (Questions 7560 - 7579)

  7560. If we could go to 107, it shows slightly better the relationship between the existing stations, the DLR and Crossrail—I will come back to this when asking questions of one of the witnesses.[13] What it shows is the relationship of the proposed stations and what we will draw attention to in due course is the lack of real interchange between a Crossrail station, given the location of the tunnels, and the other stations both existing, the Woolwich Arsenal station and the DLR station which is proposed and the Committee will see the relationship between the DLR and the main line station is much closer and much better than that with a location for a Crossrail station.


  7561. There is no dispute between the London Borough of Greenwich and the Secretary of State that a Crossrail station at Woolwich would have some regeneration benefits. Woolwich is an area targeted in policy terms for regeneration and growth, there is no issue between us on that, and Crossrail would, to an extent at least, facilitate that process. There is also no issue between the Secretary of State and the London Borough of Greenwich that a new station would cost in the order of £260 million to £270 million. It is also not in dispute that in terms of technical assessments of a benefits cost ratio, the benefits cost ratio would be at or in excess of two but, as you will hear from witnesses and our submissions in due course, we say that is not the end of the matter.

  7562. Our position is this: firstly, our position on the regeneration benefits is that although we accept there are regeneration benefits if a station were put in Woolwich, Greenwich overstates the case for the effect of Crossrail and under-plays the regeneration which can take place without Woolwich station, particularly bearing in mind the transport infrastructure which is already proposed, that is to say the DLR and the Greenwich waterfront transit. Perhaps the Committee can be shown our exhibit 12 and this is a futuristic public transport map and expanded tube map showing what the situation might be in the future for the various schemes now under construction and proposed came about, it is a map produced by the Mayor.[14] Could we focus in, please, on Woolwich, the bottom right hand corner.


  7563. At the moment, of course, Woolwich is only connected by the main line station and 'bus routes You will see from here that the DLR proposal, which is under construction and which, as I say, will be opening about 2009, will connect Woolwich Arsenal with the DLR system and you see that this will create a crossing of the Thames which is a significant venture and, secondly, that the brown dotted line is the Greenwich waterfront transit which will also provide connections within the area of Greenwich and the peninsula and provide connections throughout the borough and to the Jubilee line in North Greenwich. Crossrail you can see in purple does not propose under the Bill scheme to stop at Greenwich, but goes through from Custom House to Abbey Wood.

  7564. The Secretary of State's position, therefore, is that there are important infrastructure improvements already in the pipeline for Woolwich which will provide significant changes in terms of regeneration and that Crossrail should not be over-stated in terms of its regenerative effect and, in any event, the approach which has been taken by Greenwich is to overstate the growth both in population and in economic terms well above the projections which are used London-wide by the GLA. Perhaps I can just illustrate that very briefly with one bar chart and could you go to our exhibit 18, please?[15] This just shows you the comparative position as to what has been estimated.


  7565. As the Committee will know, forecasting for future growth and employment, population, growth and the like is always a difficult question of judgment. What we have produced in the bar chart gives you a ready comparison between a number of scenarios. This is for the borough as a whole. You will see on the left hand side the current London plan showing population and employment The Crossrail High Growth Scenario you will see next. You will then see the greatest extent in terms of population forecasting is the data that EDAW has prepared for the London Borough of Greenwich. That even outstrips the latest forecasts from the GLA which were published last year in the Housing Capacity Study. Greenwich is starting from a base in the presentation of its case which is well in excess of the Crossrail High Growth Scenario and the GLA's latest forecasts.

  7566. Can we then, please, go back to page 17?[16] If one looks at the immediate catchment of the proposed Woolwich station that effectively is more exaggerated because Greenwich see the majority of the growth targeted in the area of the station and you see there it is the same four groups of columns. You see the same disparity between the EDAW Greenwich data and the GLA and Crossrail High Growth Forecasts is exaggerated because the greater proportion of population growth is estimated or forecast by Greenwich for the station catchment. We say there is an imbalance between the forecasting that Greenwich is using and the that which the GLA is using based on its most recent data; that is a matter, no doubt, which witnesses will cover.


  7567. Finally, and most importantly, the position so far as the Secretary of State is concerned on all of this is a very simple one. Apart from the issues I have mentioned, the simple position of the Secretary of State is that Crossrail is already a very expensive project. Efforts are being made to drive down the cost of the project to make it more affordable. The project simply cannot afford another station as expensive as Woolwich however well it performs in terms of benefit cost ratio, the extra £260 million to £270 million is simply, I am afraid, going in the wrong direction so far as cost is concerned and that point is made very clear in an exchange of correspondence recently which is in our exhibits.

  7568. If we could go, please, first to page 143 of our exhibits.[17] You will see there a letter from Mr Raynsford to Mr Twigg, the Minister, raising the cost benefit issue and drawing attention to the fact. He says that Woolwich demonstrates a better cost ratio than the Crossrail scheme as a whole and he sends some information to the Minister.


  7569. If we also look at the previous page, page 142, letter sent on 2 May in which Mr Raynsford sends the EDAW report which is in evidence by Greenwich so we have not included it, it is already before the Committee if the Committee wishes to look at it and again raising the importance of the regeneration issue before the Minister.[18]


  7570. Then, finally, at pages 144 to 145 the Minister's response and there you will see that Mr Twigg writes to Mr Raynsford last Friday and you will see from the first main paragraph that there have been discussions: "I have to inform you our position remains that a station in Woolwich should not be added to the scope of the Crossrail project. I know this will come as a disappointment to you and other supporters of Woolwich's inclusion, but this would add a significant additional cost".[19] Records the fact there is no real disagreement over the costs. "It is a very substantial amount of money and it is important to ensure that Crossrail is affordable, that is why, under the leadership of Doug Oakervee, CLRL are re-examining all elements of the project in detail to find ways to drive down the cost to more affordable levels".


  7571. He deals then with the question of the cost benefit ratio and he notes at the bottom of that page: "While a benefit cost ratio is a building bock in any value for money assessment, it is important to stress that the value for money of a scheme is only one part of any appraisal method and does not provide a simple answer as to whether a scheme, in whole or in part, should be built". Then over the page it is for Greenwich to put its case to the Committee, but the Government considers that it is not a good use of limited resources and do not want to add to the costs of the project. The letter was copied to the Mayor and to Mr Hendy.

  7572. Sir, the Secretary of State's position is clear, yes, there are benefits for a station at Woolwich, those benefits should not be overstated because there are already improvements in Woolwich, but the base position of the Secretary of State is simply that the cost is too great to add to the project.

  7573. Sir, that is our position and I hope it helps to clarify that at the outset, because although there are some questions to be asked during the course of Greenwich's evidence, we have had disclosure of a substantial amount of material from them that we are going to present to the Committee. It is a matter of degree only, the real issue which the Secretary of State puts before the Committee is that this is not a project which can afford to have additional major components added to it.

  7574. Chairman: Mr Jones, would you like to start your case.

  7575. Mr Jones: I will, thank you, Sir. There is an opening in fact prepared before that letter that you have just been taken to was delivered to me that is being circulated and an electronic version can be e-mailed to an appropriate address.

  7576. Chairman: For the record if we could have this down as A83.[20]


  7577. Mr Jones: Thank you, Sir. Sir, as you will realise, the London Borough of Greenwich is in south-east London. Its petition is mainly concerned with the south-eastern section of Crossrail. Its area contains areas of social deprivation, particularly in the Woolwich/Thamesmead area which Crossrail would go beneath.

  7578. Greenwich's petition raises a number of issues. One matter is, however, of overwhelming concern to the Council, to its members, and to the residents and businesses of the Borough, that is the need for a station in Woolwich.

  7579. May I depart from my text there just to refer very briefly to a matter to which Mr Elvin mentioned in opening. The interesting transport map that he took you to at page 12 which has been provided by the Promoters might give an unduly rosy picture of the likely position in the vicinity of Woolwich.[21] You have there a familiar transport map showing underground and overground rail service and also showing two of the various 'bus ways there will be in London, Greenwich waterside transit and east London transit, but not other bus ways The result is a skewing of the impression that is created. If one removes the 'bus ways of Greenwich Waterway transit which is a browny/orange colour in the south-east and east London transit a light blue, one gains a fair comparison across the whole of London than that particular diagram shows.



13   Crossrail Ref: Crossrail Ref: P77, Proposed Woolwich Station, walk times between stations-plan (GRCHLB-3604-107). Back

14   Crossrail Ref: P77, Putting Transport on the Map (GRCHLB-3604-012). Back

15   Crossrail Ref: P77, Population and Employment Growth 2001 to 2016: London Borough of Greenwich (GRCHLB-3604-018). Back

16   Crossrail Ref: P77, Population and Employment Growth 2001 to 2016: Woolwich Station Catchment (GRCHLB-3604-017). Back

17   Crossrail Ref: P77, Correspondence from Mr Nick Raynsford, MP to the Parliamentary Under Secretary of State for Transport, 6 April 2006 (GRCHLB-3604-143). Back

18   Crossrail Ref: P77, Correspondence from Mr Nick Raynsford, MP to the Parliamentary Under Secretary of State for Transport, 2 May 2006 (GRCHLB-3604-142). Back

19   Crossrail Ref: P77, Correspondence from the Parliamentary Under Secretary of State for Transport to Mr Nick Raynsford, MP, 5 May 2006 (GRCHLB-3604-142). Back

20   Committee Ref: A83, London Borough of Greenwich Opening Statement. Back

21   Crossrail Ref: P77, Putting Transport on the Map (GRCHLB-3604-012). Back


 
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