Hoon says Crossrail will be on time and on budget

Geoff Hoon: Offering reassurance on Crossrail

TRANSPORT Secretary Geoff Hoon attempted to quell fears today that Crossrail could be delayed.

A deadline to agree funding details was missed at the end of September a year after Gordon Brown gave it the go-ahead and there have been escalating concerns among MPs and experts that the scheme could also be delayed by the recession.

The three main financial sources are a £3.5billion special levy on London businesses, a £2.7billion loan off the back of future rail fares and a £5.1billion grant from the Government.

But airport giant BAA has not yet committed itself to a £250million contribution to the rail link planned to open in 2017 running from Heathrow to Shenfield and doubts are also being raised over predicted profits for Transport for London from the redevelopment of land at the bottom end of Tottenham Court Road.

Other uncertainties about the deal include fears that there are fewer City firms around to stump up an extra contribution of £150 million and worries that the redevelopment of stations on the route will not provide the profits originally expected.

London Mayor Boris Johnson's transport officials and the Department for Transport are still in talks on the details of the deal to give the London Mayor full control over delivering the £16 billion project.

Mr Hoon stressed they were not wavering on the cross-London rail link. He told the Evening Standard: "The Government is fully committed to Crossrail and is determined that the project will be funded as planned, delivered on time and on budget.

"If we are to stimulate Britain's economic growth it is essential we make the right long-term decisions and investments in our transport infrastructure."

And earlier this week, when talking about the credit crunch, Mr Johnson said: "We must make sure we continue a vital programme of investment in London's infrastructure - Crossrail, the Tube upgrade, the Thames tunnel and the Olympic Park."

But shadow transport minister Stephen Hammond accused the Government of being too secretive. "We support Crossrail in principle but we need to be clear that there is a funding package put in place," he said.

Tony Travers, director of the Greater London Group at the London School of Economics, believes the funding package will have to be restructured given the changed economy. "It's a less than 50 per cent chance that it will start on time."

Yesterday Crossrail underlined its determination to press on by sending out letters to 97 landlords around Tottenham Court Road to say their properties would be compulsorily purchased. A number have said they will challenge the action.

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