Select Committee on Crossrail Bill Minutes of Evidence


Examination of Witnesses (Questions 8100 - 8119)

  8100. That was just part of it. Can you go to the Mayor's map. If you are saving money, I want to ask a couple of questions on that. First of all, the estimate of £260 million, can we have an analysis of that? It has just been said that it is £260 million.

  8101. Mr Evlin: Sir, I have to say, those estimates are agreed with Greenwich, there is no dispute about the £260 million.

  8102. Chairman: There might not be a dispute, but I am asking a question about how it worked out because I want to look at whether or not we could create savings elsewhere and take different decisions. I want to see the analysis of that, whether or not Greenwich agreed with it. £260 million pounds, as we have just seen in evidence, is that it is the equation of a box which is already one of the options, which are homes. I want to know how that analysis was done.
  (Mr Anderson) The analysis has been done and there is a detailed breakdown, but it does include the whole station including ticket halls and so on. We have provided that to Greenwich. I should say, we did look at the costs very hard because at the time of the Buchanan Report the cost was significantly higher, at £350 million, and we spent quite a lot of time seeing if we could get it down.

  8103. It does not seem to be an extraordinary large amount of money to have to spend on a station. Can we get a note about that? Can you beam in on this area around Woolwich like you did before, in specific the costs and the savings. We have the other line which is running along the side of this which is going to go to the Woolwich Arsenal. We are talking about the integration and co-ordination of railway interchanges and links. It strikes me that there is an awful lot of similarity going on there. You are about to drive a tunnel under the Thames for one, could that tunnel not be enlarged to be used for both, and could that then not have an impact on planning and how you could link together a station?
  (Mr Anderson) I will give you an initial answer on that, but I maybe able to take more advice on the engineering aspects. They are two quite different types of railways with different sizes of trains. Crossrail is built on a gauge of a surface railway, whereas the DLR is a much smaller gauge and a much different type of railway. As you can see, it has many, many more stops on it. I suspect the impact of driving that smaller tunnel under the Thames would be significantly less than Crossrail.

  8104. What I am saying is if you are digging a hole, you could dig two holes together or make one slightly larger. If we are talking about costs perhaps might be a consideration. Do you think considerable savings could be made there?
  (Mr Anderson) I think it is unlikely, but I can take advice on that. Obviously they do have their powers and they are getting on with it at the moment, but I can take advice on it.

  8105. Mr Binley: I am also concerned about the social contribution, because Crossrail is going to create a lot of social havoc. It is clearly aware of its social responsibilities and therefore will clearly take into account the social contribution it makes to the areas that it lives in. You have done some sort of survey on its contribution to this area. I wonder how you judge that because sometimes the contribution is positive and sometimes it is negative. I know this area a little, and I know that from my little knowledge—and I say that because it can be a dangerous thing—the potential of regeneration in this area of Woolwich could be quite sizeable. How have you analysed and come to conclusions about social contribution in terms of regeneration?
  (Mr Anderson) I think the methodology here is reasonably common, and I think the approach we have adopted is similar to that of Mr Chard. The changes in regeneration and job freedom are generally related to changes in the accessibility of an area, so we relied upon the relationship between improved accessibility and the ability not only to attract into an area but improve the opportunities for people to travel to other locations where they might find work.

  8106. As I understand it, Woolwich wins hands down over Abbey Wood in this respect because of the types of areas we are talking about. Is that so?
  (Mr Anderson) On that particular aspect that is certainly true. I should say, I do not think the issue here is providing Woolwich Station or Abbey Wood Station, it is actually providing a connection to the much wider Thames Gateway area.

  8107. I understand that, however, we have done this sort of work in Woolwich and, as I understand it, not in any of the other stations of any consequence. Is that right or am I misguided?
  (Mr Anderson) Woolwich is the only station obviously that must be subject as a station to this level of scrutiny. We have looked at the social effects, ie the regeneration effects across the whole scheme, not just on the Thames Gateway area but the other regeneration area.

  8108. Woolwich has had specific attention on this, why is that?
  (Mr Anderson) Simply because following the decision not to include it in the scheme we were asked to look at it again and we were willing to do that.

  8109. Is that not a rather odd way of doing it. Would you not rather look at it and say, "What can this bring?" instead of saying, "We are not going to deal with it but we need to know the figures so that we can argue against it". That approach surprises me.
  (Mr Anderson) We did know what it would bring to Thames Gateway generally. If you look back at the information that was assembled, when the project was appraised—Indeed, Montague did cover this to a degree—we did have the information on the effects of regeneration across the whole scheme.

  8110. I still do not see why you do it after you have decided not to have the station. I do not understand that thinking, help me.
  (Mr Anderson) All I can say is that at the time the decision was taken the principal reason for not doing this station was cost.

  8111. With respect, that is not my questions. My question is you did the sort of work on regeneration value after you decided not to build a station. I do not understand why you did that. Can you explain and help me to understand that?
  (Mr Anderson) I think in broad terms the effect on regeneration would have been understood by those taking the decision at the time.

  8112. You still have not answered my question. Why did you decide to do this work after you decided not to build a station? What was the purpose of doing the work when you said, "We are not going to build a station anyway"?
  (Mr Anderson) We did say we would look at the building of Woolwich Station again, and indeed, Montague alluded to that, so we agreed to do the analysis. At the time of the original decision I do not think the analysis of an individual location was done in detail for any point.

  8113. Was it in order to possibly review the decision about Woolwich that you did this work? Was that the reason you did it after you made the decision not to go ahead with the station?
  (Mr Anderson) In a sense, it was to look at the case again in more detail.

  8114. But the evidence suggests that that would add to a positive decision about Woolwich rather than a negative decision, would it not?
  (Mr Anderson) That is really a matter for the Minister to judge.

  8115. In terms of the figures you have given me, that would suggest to be the case. I do not understand the thinking of a body like yours spending money on a survey of some kind of analysis after you have decided not to have a station there. I am commercial man, I am a businessman, I do not understand that thinking and you have not reassured me as to why.

   (Mr Anderson) All I can say is that I do not think we did a specific survey after the decision was taken. What we did do was utilise the information we already had to look at specific effects in terms of Woolwich itself.

  8116. Mr Binley: I bet you wish your position was stronger and you were more on the front foot, do you not? I can say that, Mr Elvin. I know that, Mr Elvin; I can say that and ask that. I have my answer.

  8117. Kelvin Hopkins: As I understand it the original plan was to at least have the possibility of a station at Woolwich, that it was put in at the original design, and it went through the centre of Woolwich, which suggests that that was one of the faults. And at a later stage when costs looked as though they were going to be high some bits had to be lopped off and Woolwich was one of those bits that was taken out to save money. Is that a fair summary?
  (Mr Anderson) I do not think it was taken out to save money per se. I should say that at the time I was not part of the decision-making body, if you like, but I think that the decision was taken because of the high capital cost of providing a station in that location, not a desire in itself to save money.

  8118. Once a decision like that has been made and it has to be justified is there not a temptation to build up the costs as much as possible to make it a stronger case for leaving it out?
  (Mr Anderson) I do not believe so. The difficulties we have here, we are very deep and as I understand it the ground is not particularly good and the geography is really against us. What I can say is that since the Buchanan Report that we commissioned and published last year we did look to try and drive down the costs and did succeed doing that from £350 million down to the £270 million we have now. So I do not think it is the case that we have tried to drive costs up; quite the opposite.

  8119. Looking at the project overall it is pretty clear that there are many more stations on the north eastern branch of Crossrail than the south eastern branch of Crossrail. The stations are much closer together and there are many more of them and the populations served by some of those stations are rather smaller than that which might be served by Woolwich station, is that fair?
  (Mr Anderson) I think that is fair. Of course on the Great Eastern Line we are going along an existing line where stations already exist and Crossrail is a service that will stop at those stations. So it is not quite comparable. Of course, on the south eastern branch we have to run through the Docklands area, which is still reasonably unpopulated at the moment, and of course one has to bridge the river. So there is notably quite a long gap there while we do that.


 
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