In message .com
Mwmbwls wrote:

Further detail is emerging


http://www.transportbriefing.co.uk/story.php?id=4430

quote
Crossrail tax revealed as Mayor gains project control
Filed 10/10/07

Transport for London is to take charge of delivering the £16bn
Crossrail scheme, the government announced yesterday (9 October).

Cross London Rail Links, the 50/50 joint venture between TfL and the
Department for Transport which has worked up plans for Crossrail Lines
1 and 2, will become a wholly owned subsidiary of Transport for
London, subject to certain unspecified rights retained by the DfT that
will "reflect the Department's contribution to the project". TfL,
which answers to London Mayor Ken Livingstone, will also arrange to
borrow billions of pounds to pay for construction of the project.

Announcing his three-year Comprehensive Spending Review, Chancellor of
the Exchequer Alistair Darling fleshed out funding plans for the east-
west rail link. He confirmed that the Department for Transport will
provide approximately one third of the cost, in the form of a grant
exceeding £5bn, to be paid during the construction of Crossrail.

Fare payers will contribute around another third of the cost of the
scheme, with revenue servicing debt raised during construction by TfL
and by Network Rail in respect of works affecting the existing
National Rail Network.

The final third of the money needed will be provided by London
businesses through direct contributions and a levy on businesses.
Following the agreement reached by the DfT for Greenwich Council and
Berkeley Homes to fund Woolwich station, Canary Wharf Group will take
responsibility for delivering Isle of Dogs station. The City of London
Corporation will provide £350m towards the cost of the Crossrail
project, including a one-off lump sum, payable to the government in
2015/2016, of £200m from the City of London Corporation's own funds.
Michael Snyder, chairman of the City of London's Policy and Resources
Committee and the City Corporation have agreed to lead efforts to
raise additional contributions totalling £150m from businesses across
the capital.

Mayor of London Ken Livingstone has indicated that he envisages using
new powers proposed by ministers to levy a tax supplement on
businesses across London of two pence per pound of rateable value from
April 2010. Discounts would be available for companies with a rateable
value below £50,000. This money will be used to service £3.5bn of debt
raised by the Mayor during construction. The government is publishing
a White Paper setting out its proposals to allow local authorities to
raise supplementary business rates - in line with the Mayor's
Crossrail funding plans - to pay for wide-ranging economic
development.

The Mayor also hopes to secure further contributions from property
developers with schemes in the vicinity of Crossrail stations. Royal
Assent for the Crossrail Hybrid Bill is expected in summer 2008 with
construction of the scheme due to get underway during 2010.
unquote.

So, DfT will pay 1/3 = £5Bn. "The City" will pay another 1/3. Where is
the last 1/3 coming from? Fares we are told. But they will only come
when Crossrail is running, and there will be a gap of at least 10
years before then. Pain! I can foresee TfL's arm being twisted to
breaking to pay more. Upfront!

Michael Bell.



--

"Michael Bell" wrote in message
. uk...

So, DfT will pay 1/3 = £5Bn. "The City" will pay another 1/3. Where is
the last 1/3 coming from? Fares we are told. But they will only come
when Crossrail is running, and there will be a gap of at least 10
years before then. Pain! I can foresee TfL's arm being twisted to
breaking to pay more. Upfront!


From the DfT, in the official jargon:

Crossrail's expected cost of up to £16bn will be met by Government,
businesses and farepayers, each contributing around one third:

* Government will contribute by means of a grant from the Department for
Transport of over £5 billion during Crossrail's construction;

* Crossrail farepayers will ultimately contribute around another third of
the cost, with projected operating surpluses used to service debt raised
during construction by Transport for London, and by Network Rail in respect
of the works on the national rail network;

* London businesses will contribute broadly another third through a variety
of mechanisms:

etc etc...

Its that 'debt raised during construction' that explains your gap until
fares start coming in.

Paul

On Oct 10, 1:42 pm, "Paul Scott"
wrote:
"Michael Bell" wrote in message

. uk...



So, DfT will pay 1/3 = £5Bn. "The City" will pay another 1/3. Where is
the last 1/3 coming from? Fares we are told. But they will only come
when Crossrail is running, and there will be a gap of at least 10
years before then. Pain! I can foresee TfL's arm being twisted to
breaking to pay more. Upfront!

From the DfT, in the official jargon:

Crossrail's expected cost of up to £16bn will be met by Government,
businesses and farepayers, each contributing around one third:

* Government will contribute by means of a grant from the Department for
Transport of over £5 billion during Crossrail's construction;

* Crossrail farepayers will ultimately contribute around another third of
the cost, with projected operating surpluses used to service debt raised
during construction by Transport for London, and by Network Rail in respect
of the works on the national rail network;

* London businesses will contribute broadly another third through a variety
of mechanisms:

etc etc...

Its that 'debt raised during construction' that explains your gap until
fares start coming in.


It's a reasonably safe bet for the financial markets: Crossrail will
produce pretty big takings over the first decade of operation, and
even if it doesn't the debt is underwritten by the government. Getting
a long-term loan on that basis should be easy.

Jonn

At 04:47:54 on Wed, 10 Oct 2007 opined:-

You're making a rather large assumption about the fares on Crossrail.

Talking of fares, as an OAP I am wondering whether my Freedom Pass would
be valid.

On 10 Oct, 11:31, Sarah Brown
wrote:
There being no direct connection to TCR from KX,
There would be if they built the chelsea-hackney line.

In article . com,
lonelytraveller wrote:
On 10 Oct, 11:31, Sarah Brown
wrote:
There being no direct connection to TCR from KX,
There would be if they built the chelsea-hackney line.

I'm 34 - the chances of that happening in my lifetime are, I suspect,
about zero. :-(

In uk.railway Paul Scott wrote:
Yes, and this is all already covered in the published plans. Crossrail
definitely replaces Heathrow Connect, and the current Airport Junction is
completely changed, with two additional flyovers to deconflict all 4
required movements on and off the airport branch.

Does that include movements Heathrow to/from the west?

Theo

"Theo Markettos" wrote in message
...
In uk.railway Paul Scott wrote:
Yes, and this is all already covered in the published plans. Crossrail
definitely replaces Heathrow Connect, and the current Airport Junction is
completely changed, with two additional flyovers to deconflict all 4
required movements on and off the airport branch.

Does that include movements Heathrow to/from the west?


No, that's just westbound from the fasts and reliefs!

Paul

In message , at 22:08:38 on Wed,
10 Oct 2007, Theo Markettos
remarked:
Yes, and this is all already covered in the published plans. Crossrail
definitely replaces Heathrow Connect, and the current Airport Junction is
completely changed, with two additional flyovers to deconflict all 4
required movements on and off the airport branch.

Does that include movements Heathrow to/from the west?

There's no indications of that on the sketch-maps they've produced so
far.
--
Roland Perry

On 10 Oct, 21:27, Sarah Brown
wrote:
In article . com,

lonelytraveller wrote:
On 10 Oct, 11:31, Sarah Brown
wrote:
There being no direct connection to TCR from KX,
There would be if they built the chelsea-hackney line.

I'm 34 - the chances of that happening in my lifetime are, I suspect,
about zero. :-(
Well, the funding for projects like that seem to be dependant on
Crossrail NOT going ahead....