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As for where we are with our assessment of the Norwich northern distributor route, Norfolk submitted a major scheme business case to my Department in July 2008. The proposed scheme consists predominantly of a dual carriageway road approximately 20 km long that
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would form a new road around the north and east of Norwich. The scheme, including Postwick, is currently estimated at a cost of just over £127 million, and Norfolk is requesting a funding contribution from my Department of £79.7 million.

Although I am aware that key stakeholders in the Norfolk area, including the chamber of commerce, see the proposed scheme as part of a wider strategy for the Norwich area, including delivery of housing growth and facilitation of the broader economic aspirations for the Norwich area proposed by the Greater Norwich Development Partnership, we have not yet been in a position to approve the proposed scheme for entry to our programme of local major transport schemes.

Although I recognise that there are concerns that our assessment has taken longer than Norfolk envisaged, my officials have made good progress on a number of matters relating to the assessment of the business case, including understanding the interaction between the Postwick junction and the proposed NNDR scheme. However, before we can decide whether to grant the scheme programme entry, the Department must be completely satisfied that it meets our value for money and scheme appraisal criteria, considering the full range of scheme benefits and costs, including potential adverse environmental impacts. I note the hon. Lady's point about the relief that the scheme could bring to the inner ring road by 2012. Wider redistribution of traffic is one of many issues that the Department's assessment will need to consider carefully to enable us to understand the scheme's wider impacts.

Our assessment of Norfolk's bid for the scheme has focused very much on the traffic modelling, which has raised a number of queries requiring further work. One query was whether we could continue to assess the scheme using the existing traffic demand model that
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Norfolk used in support of the scheme bid, which unfortunately did not fully meet our current departmental requirements, or whether the council would be required to switch to a different and more up-to-date traffic model, delaying the assessment by an additional six months or more.

Conscious of the facts, we decided to undertake in the summer an urgent review of the modelling data and we informed Norfolk in September that we would accept the use of the existing modelling subject to a number of sensitivity tests to be undertaken to enable the Department better to understand the uncertainties associated with our current analysis and better to align this analysis with the Department's guidance. This is a good example of how we have tried to minimise the additional work required. My officials have worked closely with Norfolk throughout this process in order for the tests to be completed as quickly as possible. We received the results from the tests earlier this week and are now considering them.

I fully understand the importance that the hon. Lady attaches to this scheme in supporting Norfolk county council's wider strategy for the area, which includes proposed improvements to bus and cycle provision across Norwich. I also recognise the arguments that these proposals can be achieved only with the road capacity released by the NNDR. While I am unable to announce today a decision on programme entry for NNDR, I can assure you, Mr. Deputy Speaker, that we are working hard to resolve all the outstanding issues and to complete our assessment. Depending on whether any further work is required, I hope to be able to come to a conclusion and make a decision by Christmas on whether or not to grant initial funding for the scheme.

Question put and agree d to.

5.56 pm

House adjourned.


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