Jubilee Line (Hansard, 23 June 1992)

§ Mr. Norris

The current projected cost of the Jubilee line extension is £1,420 million in 1989 prices and £1,828 million in current—cash—prices. Private sector contributions were promised by Olympia and York—O and Y—Heron Quays Developments Limited—HQDL—and British Gas—BG.

O and Y was to have contributed £400 million cash, comprising £40 million on 31 March 1992; £60 million on 122W 31 March 1993; and a stream of payments over 24 years, or a single discounted payment, once the extension was opened. At the time the company went into administra-tion, it had not completed its funding agreement with London Underground Limited—LUL—setting out the terms under which its contributions were to have been made.

HQDL was to have made a single payment of £2.4 million at November 1989 prices, uplifted by 10 per cent. per annum and payable in June 1992. The company, which is a joint venture company owned partly by O and Y and partly by Regalian Homes Limited, has told LUL it cannot proceed now that O and Y has gone into administration.

BG is to make contributions in cash and kind, estimated in 1989 to be worth £24.7 million. Some of those contributions are to be uplifted at 12 per cent. per annum to the dates on which they are paid. The detailed terms under which the contributions are to be paid, including the length of time over which they would be paid, is to be specified in the funding agreement with LUL, which is still to be negotiated.

We continue to look to the private sector to make these contributions so that the line may proceed. If the contributions were all forthcoming, the proportion of the extension's total cost covered would be just over 12 per cent. in 1989 prices or 24 per cent. of the current—cash—price. The HQDL and BG contributions have not been discounted as they were originally expressed in 1989 prices. The O and Y contribution has been discounted at 8 per cent. per annum.