§ Sir Michael NeubertTo ask the Secretary of State for Transport what is the current position on the proposed extension to the Jubilee line to Stratford via Canary Wharf; and if he will make a statement.
§ Mr. MacGregorThe High Court today discharged the relevant Olympia and York companies from administration; accordingly I shall today be giving the chairman of London Regional Transport my approval for London Underground Ltd. to let contracts for the construction and equipment of the Jubilee line extension. This reflects the fact that, in anticipation of their release from administration, and with the permission of Court, Olympia and York as the developers of Canary Wharf have entered into agreements to make a contribution of some £400 million towards the cost of the extension, a previously envisaged. The first contribution, of some £100 million, will be made forthwith, finance having been made available by the European Investment bank.
London Underground Ltd. will start letting contracts for the extension at once. The total cost of the project is put at £1.9 billion, with the creation of over 22,000 jobs in the United Kingdom. London Underground Ltd. envisage completion of the extension in the first half of 1998. The 10-mile line will have 11 stations, including one at Westminster.
I warmly welcome this successful outcome. The new line, assisted by private sector finance, will be of major benefit to London and its transport system, and in particular to the development of docklands.