Select Committee on Crossrail Bill Minutes of Evidence


Examination of Witnesses (Questions 21360 - 21379)

  21360. Chairman: I realise what you are trying to do, we are too. It is ground we have already been over. Proceed for the time being.

  21361. Mr Levaggi: Mr Winbourne, have you any further comments to make in relation to Tottenham Court Road and Farringdon?
  (Mr Winbourne) Simply that there will be a cost increase by bringing St Pancras Station but the rest of the cost will be vastly reduced and I think that will balance out. The cost of Farringdon Station will come in at nil and possibly with a bonus because of the way it will be done. I cannot recall, sir, forgive me, but I do not think I have made this point in evidence before for various reasons. If I am repeating myself I do apologise, but the way it would be built would be this: you would drop down the Metropolitan/Circle Line—you get two for one—and then you have Crossrail and the Thameslink with cross-platform interchange at Farringdon on top of it so you finish up with a win-win situation from the engineering point of view. It is the less costly line that goes deeper and, of course, you have to close down to do it, there is no doubt about it, but you can do it all by cut-and-cover. That is the point.

  21362. Chairman: Talking about win-win, we have to go and vote. We will be back in ten or 15 minutes.

The Committee suspended for a division in the House from 3:15pm to 3:25pm.

  21363. Chairman: We shall resume.

  21364. Mr Levaggi: Mr Winbourne, moving to paragraph nine, Liverpool Street, what do you say about Liverpool Street?[18]

  (Mr Winbourne) I am very much on AP3 here. The Select Committee itself was concerned about overcrowding at Liverpool Street and asked for improved arrangements, which AP3 is supposed to meet and of course does at a cost, I would say at a very considerable cost. What you are looking at is a station which already was likely to cost about £1 billion because of the serious engineering underneath Liverpool Street going to Moorgate and under Finsbury Circus Gardens. Prime cost, if I can use that expression for the purpose of this explanation, therefore is about £1 billion before you start with the extras, which have been agreed with British Land. I do not disagree with them doing that if you are starting from the position of the £1 billion platforms. What I respectfully draw your attention to is this, that my proposed platforms are at the other end of Liverpool Street Station, they are not a million miles away. If I may refer you again to the meeting that we had on 13 December 2001, the very point of overcrowding was made by myself and Dr Ronald West, now deceased, an eminent rail engineer.

  21365. Chairman: In relation to the Liverpool Street Station, I will just remind you, the Promoters came to the Committee and put forward a far cheaper scheme. It was the Committee that went back and gave a decision at an earlier point which considered an expansion and gave instructions to the Promoter of what that expansion should include, so if anyone is to blame for overspending in relation to Liverpool Street it is the Members of the Committee.
  (Mr Winbourne) I am not questioning who did what, Sir, please, and I am not questioning the good faith of the Committee, not at all.

  21366. Mr Levaggi: Or of the Promoters.
  (Mr Winbourne) Or the Promoters in the situation which you put them in on this issue. I am simply saying we arrive at a position where there is a very, very high cost indeed.

  21367. Chairman: I think you have made that point and you have made it thoroughly and we are aware of that. What I need to know is can you tell us what you want us to do? We accept some of the arguments that you have been putting forward, the financial ones and in relation to the routing to Kings Cross-St Pancras and we understand that, although we still do think that one of your arguments is realignment, for whatever reason, but, nevertheless, we have allowed you to go on with your argument. What we want to know now is what you want us to do in relation to AP3? Are you just going to give us a financial critique all the way through or are you going to tell us what you want?

  21368. Mr Levaggi: Sir, in my submission, the financial critique is essential. This is an incredibly expensive project, these projects always are. It is perhaps a truism to say that, nevertheless, it is an incredibly expensive project. I think on the Promoter's own case, it is something like £7.9 billion. The Petitioners' concern is that this is done in the most cost-effective way with the least disturbance as possible. The Petitioners ideally would like there to be a proper assessment, maybe by way of a further environmental assessment, of the true cost of this as compared with other possibilities.

  21369. Chairman: Your case is that you want a new financial calculation on the whole remit of Crossrail, in particular up to AP3?

  21370. Mr Levaggi: Sir, it surprises me that this sort of assessment is not continuously done in relation to this sort of project. When smaller transactions take place, perhaps with private clients and that sort of thing, there is a continuous assessment of the cost of the transaction, there should be. If costs go up, and we say the AP3 has created further costs, and we say those costs are significant, surely there should be a reassessment. There should always be a reassessment.

  21371. Chairman: Let me get this correct, what you are asking for then is a reappraisal, a re-evaluation of the cost of Crossrail in relation particularly to AP3?

  21372. Mr Levaggi: That is correct, yes. Whereas the Promoters might say—I will not put words in their mouth—some of this has been set in principle, we would submit that even though it is set in principle, that should not stop the Committee considering whether or not this is really the most cost-effective approach, particularly when the cost on the Promoter's own case amounts to half billion pounds. Sir, it is perhaps a cheap point to make, but there have been previous projects like this, for example the Jubilee Line Extension which was originally costed at something like £2 billion and came in at something like £4 billion, and it is perhaps a cheap point to mention Euro Tunnel which was originally costed at £4.9 billion and came in at something like £8.8 and is still in debt, something to the tune of £6.6 million. These points might be cheap points and they are not points for you to make any ruling in relation to. All we are saying is we would urge the Committee to look at AP3 prudently and with prudence, we would say, this should result in a proper continuous assessment of whether these costs are necessary costs and whether or not there should be a complete reassessment of the whole thing.

  21373. Chairman: That is clarity because we have got where you want us to go, I just find it difficult to understand why we are going station by station, area by area, building by building. We accept the argument, you have made us very well aware of it, is that the only area you want to visit or do you want to amend the Bill or do you want to set AP3 aside or what?

  21374. Mr Levaggi: Sir, in my submission, one has to go through this station by station. To some extent, the point has been made that you have been directed by the House to include the stations, they have been set, and let us say it is accepted that those stations are set in stone, fine, but even if the stations are set in stone, we want to be able to persuade on a station-by-station basis that a financial assessment should still be made as to whether or not this route through these stations could be done in a better more cost-effective way and that is the point we are trying to make.

  21375. Chairman: The line of route has been set, we have been given that and we have been given the stations on that. If there is any variation of that, it is slight.

  21376. Mr Levaggi: Sir, my learned friend, David Elvin, wrote to you and very helpfully, in my view, set up the direction, so this is the basis of what has been set for you to consider. It is set out to you in the letter dated 23 February. You have seen this and you have responded to it but for ease of reference, let me read to you the direction: "In applying the practice of the House, the Select Committee treat the principle of the Bill as including ... ... .the provision of intermediate stations at Paddington, Bond Street, Tottenham Court Road, Farringdon, Liverpool Street, Whitechapel, the Isle of Dogs and Custom House". Sir, this is the extent of the direction to you. We have quite carefully tried to keep to that direction with our submissions. I do not believe Mr Winbourne has suggested that any of those stations listed in that line should be changed or altered in position.

  21377. Ms Lieven: Is it helpful for me to interject?

  21378. Chairman: Yes.

  21379. Ms Lieven: I was only going to say that in my submission it is self-evident that what is happening here is the Promotion of an alternative alignment. As Mr Elvin said in the letter which has just been referred to, that alternative alignment involves not just a completely new route all the way from Paddington past Liverpool Street, it is a different route, it is outside the limits of deviation and it is a fundamentally different route because it is running north of Oxford Street. It also involves what is a new station at Wigmore Street, and a new station at Tottenham Court Road because although it still would have the name Tottenham Court Road, it is in a completely different location way to the north, so it is obvious it is an alternative alignment and it is obvious that it goes to the principle of the Bill. Further, Sir, there is the minor point which I did point out the last time, but at the risk of being boring I will point it out again, none of this is raised in the Petition and none of it involves a direct effect upon the residents of Mayfair. In my submission, the Committee would be perfectly justified in simply saying that they have heard most of this material before, they believe it goes to the principle of the Bill and they are not going to hear it anymore.


18   Committee Ref: A230, Revised `Planning Balance Sheet' covering broad brush comparisons between Crossrail and CNIR to include engineering costs, environmental, valuation, compensation and disturbance issues following AP3 (WESTCC-AP3-27-05-047). Back


 
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