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5 Feb 2008 : Column 1004W—continued
| Breakdown of costs and benefits from additional airport capacity, Net Present Value (NPV), 2006 prices | ||
| £ billion | ||
| One additional runway at | ||
| Stansted (2015) | Heathrow (2020) | |
| (1) A non-zero impact is estimated, but the result rounds to nought at zero decimal places. (2) No impact has been estimated. Notes: 1. Figures are rounded to zero decimal places. 2. Heathrow figures are based on “option 1” from the “Adding Capacity at Heathrow Airport” consultation document, and assume the midpoint of the range of infrastructure costs. 3. The base case for the Stansted option assumes no new runways, while the base case for the Heathrow option assumes an additional runway opens at Stansted in 2015. | ||
The “generated users” benefit measures the benefit to extra passengers of additional capacity. The following table further breaks this down between UK and non-UK residents.
| Breakdown of “generated user” benefits from additional airport capacity, NPV, 2006 prices | ||
| £ billion | ||
| Stansted | Heathrow | |
| Notes: 1. Figures are rounded to zero decimal places. 2. Heathrow figures are based on “option 1” from the “Adding Capacity at Heathrow Airport” consultation document, and assume the midpoint of the range of infrastructure costs. 3. The base case for the Stansted option assumes no new runways, while the base case for the Heathrow option assumes an additional runway opens at Stansted in 2015. | ||
Aviation: Fuels
Sir Paul Beresford: To ask the Secretary of State for Transport what price for aviation fuel (a) for the period to 2030, (b) for the period 2030 to 2050 and (c) for the period 2050 to 2080 is used by her Department in calculating the economic benefits of new runways in its publication, UK Air Passenger Demand and CO2 Forecasts is assumed. [183581]
Jim Fitzpatrick
[holding answer 31 January 2008]: UK Air Passenger Demand and CO2 Forecasts (published 2007) reports the latest air passenger demand forecasts and economic benefits of additional
airport capacity. It explains (page 88) that aviation fuel prices were projected by combining the Department for Business Enterprise and Regulatory Reform projection of crude oil prices with the strong historical relationship between oil and aviation fuel prices.
The following table shows the resulting projections of aviation fuel prices in 2030 (in 2004 prices).
| Oil price scenario | Aviation fuel price, £/litre |
UK Air Passenger Demand and CO2 Forecasts also explains (page 48) that, after 2030, demand at each airport with spare capacity is projected to grow at the rate forecast for the five years prior to 2030. Demand at each airport is assumed to grow no further once its capacity is reached. This implicitly assumes oil and aviation fuel prices would be broadly constant after 2030.
The report further shows that the resulting forecasts and economic benefits of additional airport capacity are robust to a range of sensitivity tests, including oil prices.
Sir Paul Beresford: To ask the Secretary of State for Transport what the most recent assumption of aviation fuel prices is in (a) US dollars per barrel and (b) pence per litre used by her Department in its calculations of costs. [183582]
Jim Fitzpatrick [holding answer 31 January 2008]: UK Air Passenger Demand and CO2 Forecasts (published 2007) reports the latest air passenger demand forecasts and economic benefits of additional airport capacity. It explains (page 88) that aviation fuel prices were projected by combining the Department for Business, Enterprise and Regulatory Reform projection of crude oil prices with the strong historical relationship between oil and aviation fuel prices.
These projections were made during 2007 from the most recent complete annual outturn data available at the time, which was 2006. The 2006 aviation fuel price was assumed to be $0.53 per litre, or 28 pence per litre.
UK Air Passenger Demand and CO2 Forecasts also shows that the forecasts and economic benefits of additional airport capacity it reports are robust to a range of sensitivity tests, including oil prices. The report is available at:
Biofuels: Standards
Mr. Roger Williams: To ask the Secretary of State for Transport what progress has been made towards the targets that all petrol and diesel sold in the UK contain a minimum of (a) 2.5 per cent. biofuel by April 2008, (b) 5 per cent. by 2010 and (c) 10 per cent. by 2020. [184890]
Jim Fitzpatrick:
The Renewable Transport Fuel Obligation (RTFO) will come into effect on 15 April 2008. Under the RTFO, transport fuel suppliers will be required to demonstrate that an increasing percentage
of total UK road transport fuel sales is made up of biofuels or other renewable transport fuels. The level of the RTFO rises from 2.5 per cent. in 2008-09 to 5 per cent. in 2010-11. The Renewable Fuels Agency (RFA) will report regularly on the progress that is being made towards these targets, as well as on the carbon savings and sustainability impacts of the policy. Further details are available via the RFA's website at:
No target for UK biofuel sales has yet been set for 2020. The level of any target will depend on the outcome of negotiations on the proposed renewable energy directive, issued in draft by the European Commission on 23 January 2008.
Bus Services: Concessions
Mr. Beith: To ask the Secretary of State for Transport pursuant to the Oral Answer of 22 January 2008 to Question 180535, what estimate she has made of the overall cost of making English and Scottish national pensioners’ bus passes interchangeable; and what proportion of this cost she would expect to arise from (a) the use of Scottish bus passes in England and (b) the use of English bus passes in Scotland. [182078]
Ms Rosie Winterton [holding answer 29 January 2008]: In 2006, discussions were held with the Scottish Executive about reciprocal arrangements for concessionary travel. These identified technical and financial implications that would need to be resolved before there could be further extensions to national schemes, for example, how operators will be properly reimbursed (given the differing arrangements in place in the three areas) by whom, and whether the terms of the three different concessions would have to be aligned (which would be very expensive).
However, that does not prevent local authorities from making arrangements for cross-border travel, should they wish to do so.
Our current focus remains on ensuring a successful introduction of the new England-wide concession on 1 April and at this stage we have made no detailed assessment of the cost of introducing mutual recognition of concessionary bus passes between Scotland, Wales and England.
Bus Services: Finance
Mr. Heald: To ask the Secretary of State for Transport for what reason the central Government grant to Transport for London does not cover buses which cross the boundary into Hertfordshire; and if she will make a statement. [183777]
Ms Rosie Winterton: The Department for Transport is the main source of external funding for Transport for London (TfL) through the GLA Transport Grant. However, the GLA Act does not allow any conditions to be attached to this grant. The use of funding from Government is a matter for TfL and the Mayor.
TfL can and does support many bus services which run into Hertfordshire and other counties.
Capita
Mr. Amess: To ask the Secretary of State for Transport how much was paid by her Department to Capita Group plc and its subsidiaries in each financial year since 2000; which contracts were awarded by her Department to Capita Group plc in each year from 2000-01 to the most recent available date; what the cost was of each contract; what penalties for default were imposed in contract provisions; what the length was of each contract; whether the contract was advertised; how many companies applied for the contract; how many were short-listed; what criteria were used for choosing a company; what provision was made for renewal without re-tender in each case; and if she will make a statement. [180694]
Jim Fitzpatrick: The Department was formed in May 2002. The following table shows the total value of payments made by the Department to the Capita Group plc. and its subsidiaries in each complete financial year since then.
| Period (financial year) | Total expenditure (£) |
| (1) Starting from 1 May 2002. | |
A further table showing the ‘contracts awarded’ by the Department to the Capita Group plc. and its subsidiaries since 1 May 2002 and up to 31 March 2007 has been placed in the House of Commons Library. This table shows the contract title, start and current end date and the estimated value of each contract and, where it has been possible to identify them, those orders raised against framework arrangements.
The other questions could be answered only at disproportionate cost. However the relevant key themes for all procurement in the Department are:
Fair and open competition;
Value for money—based on quality and whole life cost; and
Adherence with the policy and regulatory framework.
Unsatisfactory performance and default are dealt with by specific contract terms and conditions. These include provision to withhold or reduce payment or may entitle the Department to compensation for loss brought about by delay or poor performance.
A contract may be awarded on the basis that it can, subject to satisfactory performance and to business need, be extended without further competition. Other renewals are subject to specific, delegated, approval levels.
Cycling
Mr. Drew: To ask the Secretary of State for Transport what plans she has to provide funding to complete the Sustrans network as part of the Government’s cycling strategy. [183046]
Ms Rosie Winterton: The Secretary of State has just announced a new £140 million funding programme for cycling. Cycling England will be responsible for the detailed delivery and direction of it. There is a commitment set out in “A Sustainable Future for Cycling” to provide 250 links to schools, which will form part of the National Cycle Network (NCN) and to build other infrastructure, such as cycling routes to business parks, which are also likely to be a part of the NCN.
In addition, there is a commitment to extend the successful Cycling Demonstration Towns programme by building on the success of the six existing locations with up to 10 new towns and cities and one large conurbation. We do not yet know how much hew cycling infrastructure these towns and cities will build, although doubtless some of it will take the form of extensions to the NCN.
In addition, Sustrans was awarded £50 million in December 2007 from the ‘Peoples Millions’ lottery for their Connect2 programme. This will provide 79 separate projects to link communities to places they want to access and will in the main form part of the NCN. Local authorities will be match funding these projects, largely from their local transport plan allocation from the Department, of which it is estimated English local authorities (outside London) will spend around £40 million on cycling in 2007-08.
Departmental Accountancy
Mr. Hoban: To ask the Secretary of State for Transport what items of her Department’s (a) revenue and (b) expenditure are uprated using (i) the consumer prices index, (ii) the retail prices index and (iii) other measures of inflation. [179938]
Jim Fitzpatrick: A comprehensive answer, covering all items of expenditure and revenue within the Department, could be produced only at disproportionate cost. The majority of the Department’s expenditure and revenue items are determined on an individual grant or contract basis, with each having their own terms and conditions.
However, major items in the Department’s accounts that are index linked include:
For rail, the franchise subsidies/premiums and the Network Rail grant are both fixed in real prices, and are uplifted by reference to the retail prices index.
The domestic capacity charge, paid to the London and continental railways to ensure that the high speed rail link is available for domestic services, is uprated in line with the RPI.
The Highways Agency has granted a £60 million subordinated loan to Severn River Crossing plc. The loan is indexed by reference to the RPI and carries an interest rate of 6 per cent. per annum.
The latest private finance initiative schemes entered into by the Highways Agency, under design, build, finance, operate (DBFO) arrangements, are uprated in line with RPI.
Voluntary early retirement pension payments are uprated in line with RPI, where they fall under appropriate provisions of the Principal Civil Service Pension Scheme.
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