HC Deb 10 December 1993 vol 234 cc385-7W
Mr. Raynsford

To ask the Secretary of State for the Environment (1) if he will publish the latest estimate available to his Department of the number of passengers expected to use the Cutty Sark station on the Docklands light railway extension;

(2) if he will itemise and cost each of the savings made to reduce the cost of the Jubilee line extension to Greenwich and Lewisham.

Mr. Baldry

The London Docklands development corporation, the owners of the railway, have made projections of potential passenger traffic at stations along the new extension. Annual projected passenger movements for a station at Cutty Sark rise from 1.4 million when it opens in 1997–98 to 2.5 million in 2001. Forecasts indicate that if Cutty Sark were not to be provided, the majority of potential passengers would use the new Docklands light railway station at Greenwich instead. The Government have asked the London Docklands development corporation and the Docklands light railway to consult local interests on the deletion of these stations before a final decision is made.

Provision of a new station at Cutty Sark would cost an estimated £13 million; at Island Gardens an estimated £4 million. The original estimate of costs also included £10 million for initial rolling stock which are now to be provided by Docklands light railway as operators of the extension. Other potential cost reductions may result from a fall in the land acquisition costs and from minor changes in the project's specifications.

Mr. Raynsford

To ask the Secretary of State for the Environment what criteria of viability he has applied to the future of the Island Gardens and Cutty Sark stations; and if he will make a statement.

Mr. Baldry

The Department, together with the owners of the railway, the London Docklands development corporation, and Docklands Light Railway Limited itself, has made an assessment of the financial viability of the extension to Lewisham in the light of independent merchant banking advice. The conclusion was that the forecast incremental revenue from passengers on the extension could not finance the full project as previously costed—at £140 million. A review of the capital and operating costs of the project has indicated provisionally that the new stations proposed for Island Gardens and Cutty Sark will need to be deleted in order to make the project as a whole viable. These stations would be situated underground at each end of the new tunnel taking the railway under the Thames and would involve much higher costs of construction and operation than the ground level stations along the line. The forecast revenue from both stations would cover only the estimated running costs of those stations and would not be sufficient to contribute towards the capital costs of their construction.

The Government have asked the London Docklands development corporation and Docklands Light Railway Limited to consult local interests including businesses before a final decision is made on whether to delete the stations.

The Government have consistently supported this project on the condition that no Government grant or subsidy will be made available. That remains the position. Nevertheless, approval has been given for the project to proceed as a joint venture between the private and public sectors, with capital contributions being made by Lewisham council, South Thames training and enterprise council and Deptford city challenge.