Examination of Witnesses (Questions 7920
- 7939)
7920. CHAIRMAN: I know that this has
not been specifically raised. Have you discussed this with the
Promoter?
7921. MR SCOTT: Yes, my Lord.
7922. CHAIRMAN: I imagine that the Secretary
of State is not going to be mighty pleased if the nominated undertaker
goes broke.
7923. MR SCOTT: Exactly.
7924. CHAIRMAN: If that is the only thing
that is left—and I do not think you need to explain what
the problem is, anybody can understand that, and we have only
had recent examples of various railway types.
7925. MR SCOTT: Metronet is the example
that we have been in discussion about.
7926. CHAIRMAN: I wonder if it would
be helpful if the Promoters said what provisions they have for
such an eventuality because that might solve your problem in that
respect.
7927. MR SCOTT: Absolutely, my Lord.
7928. CHAIRMAN: And it is not something
that we have had before.
7929. MR SCOTT: In the course of our
discussions that has become apparent, my Lord.
7930. CHAIRMAN: Mr Mould, might that
be a useful thing to attack at the moment?
7931. MR MOULD: It might be helpful if
I just have put on the overhead the clause in question and then
your Lordships can have a glance at it.[19]
7932. CHAIRMAN: By all means.
7933. MR MOULD: I should say whilst that
is being done that this is a provision which you will find generally
in agreements that we have been negotiating with Petitioners.
Whilst these Petitioners are very special in one sense—and
that is in relation to the matters which you have been hearing
about before the coffee break, as regards the historic value of
their building—in this respect they are just as any other
Petitioner. That is to say, that this clause reflects the intention
as set out in the Bill and is well known publicly that the Promoter
intends to appoint a nominated undertaker who will be responsible
for carrying out the construction of the railway and following
construction appoint a nominated undertaker or nominated undertakers
who will be responsible for its operation and maintenance thereafter.
The standard approach in relation to contractual undertakings
which we have entered into with Petitioners and others is that
following the appointment of the nominated undertaker the Promoter
will secure covenants from that person to take over the contractual
responsibilities, duties and liabilities which the Promoter has
undertaken with the Petitioners, proprietors and others through
agreements of this kind. So the nominated undertaker will be the
person they will look to contractually for performance of their
contractual rights rather than the Promoter—or I suppose
strictly the Secretary of State.
7934. CHAIRMAN: Just take us through
this a little bit more slowly. The nominated undertaker appears
at 5.1(a) and who is the transferee?
7935. MR MOULD: That is the nominated
undertaker.
7936. CHAIRMAN: And there is a deed of
covenant.
7937. MR MOULD: Yes.
7938. CHAIRMAN: But what happens if the
transferee goes bust?
7939. MR MOULD: Then the Secretary of
State has—
19 Crossrail Ref: P53, Draft agreement between the
Secretary of State for Transport and the Trustees of the House
of St Barnabas-in-Soho, Para 5 Assignment (SCN-20080403-011) Back
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