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Railways: Crossrail

Volume 712: debated on Thursday 16 July 2009

Statement

My right honourable friend the Minister of State for Transport (Sadiq Khan) has made the following Ministerial Statement.

On 14 July last year, my honourable friend Tom Harris made a Statement offering assurance to Parliament that a Statement would be published at least every 12 months until the completion of the construction of Crossrail, setting out information about the project’s funding and finances. This assurance was placed on the Crossrail Register of Undertakings and Assurances.

The Government are committed to ensuring that there is a high level of transparency as to the progress and cost of the Crossrail project. Our intention in this area was set out in the heads of terms which were signed in November 2007. The heads of terms have now been superseded by the Crossrail core agreements, binding legal documents which set out the funding, governance and delivery arrangements for the Crossrail project. These were signed by the Secretary of State for Transport, Transport for London and Cross London Rail Links Limited on 3 December last year and were published in the House Library, with an accompanying Statement to the House. Since the assurance was given, Cross London Rail Links Limited has also changed its name to Crossrail Limited.

In line with my honourable friend’s assurance to the House, I am therefore publishing this Statement within 12 months of the Crossrail Act 2008 coming into force on 22 July 2008, and set out below the information outlined in that assurance:

Total funding amounts provided to Crossrail Limited by the Department for Transport and TfL in relation to the construction of Crossrail in the period 22 July 2008 to 30 May 2009

£200.922 million

Expenditure incurred by Crossrail Limited in relation to the construction of Crossrail in the period 22 July 2008 to 30 May 2009 (excluding recoverable VAT on land and property purchases)

£196.803 million

Total expenditure incurred by Crossrail Limited in relation to the construction of Crossrail to the end of the period 22 July 2008 to 30 May 2009 (excluding recoverable VAT on land and property purchases)

£196.803 million

The amounts realised by the disposal of any land or property for the purposes of the construction of Crossrail by the Secretary of State, TfL or Crossrail Limited in the period covered by the Statement

Nil

The numbers above have been provided by Crossrail Limited and are drawn from its accounts for the relevant periods.

I can also confirm that the costs of the construction of Crossrail are likely to fall within the agreed budget, based on best current estimates of costs provided by Crossrail Limited.

The Government remain fully committed to Crossrail. This is a long-term major infrastructure project, helping and responding to the transport needs of London and the south-east for the next half century and more.

We remain confident that Crossrail will be delivered on time and on budget and that the project can be funded as planned.