No PFI for Crossrail

The government has abandoned plans to use a Private Finance Initiative to pay for the £1bn Crossrail train fleet.

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Thousand more jobs can be saved, says Crow

Bob Crow, general secretary of the Rail Maritime and Transport union, said: "These job creation figures show just what an impact major transport infrastructure projects can have on the economy and the Government should wake up and take note.

Thousands more jobs can be saved and created if the decision is now taken to build the Crossrail fleet in Britain."

Crossrail to support 55,000 full time jobs

The multi billion pound Crossrail project will support around 55,000 full-time jobs, according to new figures.

Contracts worth £5.5 billion have already been awarded, with 43% given to businesses outside London and the South East.

Three out of five firms in the supply chain are small to medium sized enterprises.

Total funding for the 73-mile rail route from Maidenhead to east London, due to open in 2018, is £14.8 billion, with most contracts in the supply chain yet to be awarded.

Andrew Wolstenholme, Crossrail chief executive said: "Crossrail will not just benefit London and the South East - the project's economic benefits are being felt well beyond the confines of the M25."

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Admit how much taxpayers' money wasted - say Labour

Maria Eagle MP, Labour’s Shadow Transport Secretary Credit: PA Wire

Labour's shadow Transport Secretary *Maria Eagle MP, *said:

“This isyet another humiliating transport shambles.

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, just as Labour did for the new generation of Intercity trains which are to be constructed in the North East.

By waiting until the last minute before they were due to confirm the final shortlist of two companies, Ministers have put at risk the timetable for delivery of these trains.

As this order needs to be placed in just over a year from now if the rolling stock is to be delivered by 2017, it would be the ultimate embarrassment if Crossrail were to be completed but unable to open because the trains have not arrived in time.

The Government must come clean and admit how much tax-payers 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 £50 million of taxpayers’ money paid out to train companies following the collapse of the West Coast franchise competition.”

Private companies couldn't raise funds on time

Boris Johnson and transport secretary Justine Greening with one of 8 tunnelling machines in west London Credit: Yui Mok/PA Wire

New trains for the Crossrail scheme are to be fully funded by the taxpayer so that the £14.8 billion project can start on time.

Initial plans for the £1 billion Crossrail rolling stock procurement involved £350 million from the public purse, with the rest of the money coming from the private sector.

But with private companies having trouble raising funds quickly enough, Transport for London was concerned Crossrail would be ready to open in late 2018 but there would be no trains.

TfL said the new plan ensured a deal would be in place next year, with delivery and testing starting in 2017.

The 100% taxpayer funding arrangement was welcomed by rail unions RMT and TSSA.

Bob Crow, General Secretary of the National Union of Rail, Maritime and Transport Workers (RMT) Credit: Anthony Devlin/PA Wire

RMT leader Bob Crow said:

"This is a hugely important development and a recognition that TfL and the Department for Transport do not want to repeat the fiasco of the Thameslink/Siemens deal that nearly killed train building in the UK and which remains log-jammed nearly two years on."

"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."

TSSA leader Manuel Cortes said:

"We welcome the fact that Tory ministers recognise that it is cheaper and quicker to have publicly-funded new trains for Crossrail, but why stop there?

"Why don't we just get rid of the privately-run Roscos (rolling stock leasing companies) and build cheaper trains in Britain for the whole network, not just those operated by the mayor of London? By replacing the privateers, we could then start cutting fares."

New trains now 100% funded by taxpayer

Instead of using PFI cash, the new trains will instead by 100% funded by the taxpayer.

the first trains are due in 2018.

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