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Crossrail trains to be fully funded by taxpayers Crossrail trains to be fully funded by taxpayers
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The full £1bn bill for Crossrail trains will now be met by the public purse after the government decided that attempts to secure private finance risked delaying the project beyond 2018.The full £1bn bill for Crossrail trains will now be met by the public purse after the government decided that attempts to secure private finance risked delaying the project beyond 2018.
After the problems Siemens encountered in securing financing for its Thameslink trains contract, the transport secretary, Patrick McLoughlin, has abandoned private finance plans and agreed to the proposals from the mayor of London, Boris Johnson, to fully fund the new fleet of trains and maintenance facilities for Crossrail.After the problems Siemens encountered in securing financing for its Thameslink trains contract, the transport secretary, Patrick McLoughlin, has abandoned private finance plans and agreed to the proposals from the mayor of London, Boris Johnson, to fully fund the new fleet of trains and maintenance facilities for Crossrail.
Previously the state was to make a £350m contribution. Last September bidders were invited to apply for a government guarantee to help secure financing, in an attempt to speed up the delivery of the project. The offer apparently did not go far enough to provide assurance that the trains would be built on time. Labour and unions demanded that the public money be used to secure train manufacturing jobs in the UK.
The state had previously planned to make a £350m contribution. Last September, bidders were invited to apply for a government guarantee to help secure financing in an attempt to speed up the delivery of the project. The offer apparently did not go far enough to provide assurance that the trains would be built on time.
Crossrail, the east-west line joining Heathrow airport to Canary Wharf and beyond, is scheduled to open in late 2018, with 26 miles of tunnel being constructed under London for trains that will also operate on standard overground tracks, with a capacity of 36,000 passengers an hour.Crossrail, the east-west line joining Heathrow airport to Canary Wharf and beyond, is scheduled to open in late 2018, with 26 miles of tunnel being constructed under London for trains that will also operate on standard overground tracks, with a capacity of 36,000 passengers an hour.
With the Department for Transport still reeling from the west coast mainline franchise fiasco and yet to fully establish when and how major train operating contracts for the whole network will be awarded, it has decided to simplify and speed up the procurement process for Crossrail. The department hopes a deal will be struck next year with train delivery and testing starting in 2017. With the Department for Transport still reeling from the west coast mainline franchise fiasco and yet to fully establish when and how major train operating contracts for the whole network will be awarded, it has decided to simplify and speed up the procurement process for Crossrail. The department hopes a deal will be struck next year, with train delivery and testing starting in 2017.
The bidding battle may eventually again pitch Siemens against Bombardier, the short-listed pair for the Thameslink contract. Siemens' win was seen as potentially spelling the end for the Bombardier manufacturing plant in Derby. The bidding battle may again pitch Siemens against Bombardier, the shortlisted pair for the Thameslink contract. Siemens' win was seen as potentially spelling the end for the Bombardier manufacturing plant in Derby.
Johnson said: "Crossrail is now hitting its stride with tunnels being bored and stations being built at lightning pace. Nothing must get in the way of this fabulous new railway and it is fantastic news that we can now crack on with buying the wonderful fleet of brand spanking new trains."Johnson said: "Crossrail is now hitting its stride with tunnels being bored and stations being built at lightning pace. Nothing must get in the way of this fabulous new railway and it is fantastic news that we can now crack on with buying the wonderful fleet of brand spanking new trains."
However, Labour said the last-minute decision to abandon its plans to use private finance represented "another humiliating transport shambles" and said it was crucial to ensure that the new public spending created British jobs.
Shadow transport secretary Maria Eagle said: "Labour has spent two years urging ministers to learn the lessons from the botched Thameslink contract, which saw trains for London being built in Germany, and instead fund them in a way that secures the best deal for the taxpayer. Ministers must now ensure that this public spending delivers jobs in the UK.
"The government must come clean and admit how much taxpayers money was wasted on the abandoned model of procurement and whether they will be forced to compensate bidders for their own additional costs, adding to the £50m paid out to train companies."
Bob Crow, the RMT general secretary, said: "The Crossrail fleet should now be built through public procurement at Bombardier in Derby, saving skilled manufacturing jobs and UK train building, and delivering the rolling stock on time without the madness that has dogged Thameslink from day one."