The Crossrail scheme will seek to make two-thirds of London pay for a line that will support a third of London’s richest community most of whom are commuters. Further taxpayers liabilites are likely given that the previous estimates, produced by the independent analyst turned Crossrail chairman Adrian Montague, have risen by 7 billion pounds. It has already cost taxpayers over £300 million pounds. We report why Adrian Montague is running privatisation schemes to rip off taxpayers making him little more than a tax thief.
Crossrail do not have the relevant funds for the £17bn scheme + interest for 30 years, for which taxpayers are expected to foot the bill. Crossrail chairman Adrian Montague produced an ostensibly independent feasibility report on the scheme before becoming chairman in July 2004. Montague report states the Crossrail scheme ‘appears to deliver value for money’. But goes on to state there is ‘significant uncertainty’ and ‘cannot be satisfied that Crossrail’s Business Case fully meets the tests in the Terms of Reference’. There is concern whether taxpayers will ever receive value for money from Crossrail and their future liabilities.
Montague has a history of involvement in PFI/PPP schemes. Many of which have relied on huge amounts of taxpayers’ money. In 2000, he was made Sir Adrian Montague “for services to the private finance initiative” but little was said about his services to taxpayers. Under “New” Labour, the ex-City lawyer Montague became the £160,000 a year head of Gordon Brown’s Treasury Taskforce on PFI. Montague extolled the virtues of PPP at an annual conference for Public-Private-Partnerships in 1999. He proclaimed: “It is not enough for public authorities to decide what sort of deals they want, they must also be aware of what sort of deals the private sector is willing to do”. According to Red Pepper, Montague helped John Major draw up the privatisaton of British Rail. In 2000, John Prescott made him a member of the Strategic Rail Authority (SRA), which was designed to help fix the privatisation of British Rail.
During a House of Commons debate on the Strategic Rail Authority in May 2004, Joan Walley, MP asks “Why is the SRA not accountable for the way in which it runs its services? Paul Marsden MP asks: “Why has he not been able to find a way to stop the apparent abuse of taxpayers’ money? ” At a later date, the National Audit Office stated: “the taxpayer could be exposed to further financial risk of £360 million”. Montague is also chair of British Energy. Montague received a bonus of £100,000 for restructuring funded by the taxpayers. The £5bn restructuring plan leaves the taxpayers open to take on further liabilities to the tune of £1.7bn with a further £3.9bn for the decommissioning of nuclear power stations. The National Audit Office blamed the Government for leaving taxpayers holding the liabilities for decommissioning its nuclear power stations. The total cost of cleaning up over 50 years of nuclear waste from UK power stations and military projects will rise to over £56bn according to Sir Anthony Cleave, who is chair of the Nuclear Decommissioning Authority. Mr Montague is currently promoting the use of nuclear energy instead of other viable alternatives.
Crossrail has failed to make the case for why two-thirds of London should pay for a line that will support a third of London’s richest community most of whom are commuters. The City and Canary Wharf, who are the major beneficiaries, previously offer to contribute towards Crossrail. However, support has been lukewarm since the Crossrail Bill has been presented to Parliament and the Government has assumed responsibility for the publicly funded scheme. The last reported offers from the City and Canary Wharf included a surcharge of 9million for 30 years with options to reduce the duration if fare revenue exceeds expectations. The Government claims it will not contribute more than £2billion. But a study produced by the Department for Transport proposes to use council tax rises. This will leave Londoners paying £8billion over 30 years. Crossrail has failed to prove the viability of what is fast becoming an exclusive scheme beneficial to City personnel, which means it, will be producing an annual £350-400m deficit. Claims that the likely revenue will be £200million a year still leaves the public to pay for the interest payments on a shortfall of at least £4-5billion with little or no mention of operational costs.
Privatisation particularly transport projects have proved to be poor value for money for taxpayers and users alike. Londoners have endured 226 delays caused by privatised companies Metronet and Tube Lines. Both were fined only £15.6million despite receiving subsidies worth more than a billion from taxpayers. Montague also led the finance team, which signed the Metronet London Underground Public Private Partnership. This is on top of £109 million paid to consultants and lawyers involved in the part-privatisation of the tube. The Government has already paid Crossrail start up subsidies of £300million to ensure it obtains necessary powers and meets a timetable for a bill deposit. Crossrail previously received £144 million from then Conservative Minister for Transport Paul Channon in 1989. Money was spent on an office block in Victoria and well-paid consultants.
The flaws of the Crossrail scheme are outlined in detail on the alternative rail scheme promoter Superlink, who state: “Crossrail's £6.5 billion funding gap can only be funded with additional taxes. Superlink £3.2 billion funding gap is only half as large, and could be funded without special new taxes. It only delivers 2.3% additional commuters into London. It delivers a 7% to 10% increase in commuting capacity. Crossrail only relieves congestion on a few routes, and actually worsens congestion and may affect performance on some National Rail routes. [Crossrail] has not even figured out how they will share tracks with existing freight and passenger services.”
Montague has a history of involvement in PFI/PPP schemes. Many of which have relied on huge amounts of taxpayers’ money. In 2000, he was made Sir Adrian Montague “for services to the private finance initiative” but little was said about his services to taxpayers. Under “New” Labour, the ex-City lawyer Montague became the £160,000 a year head of Gordon Brown’s Treasury Taskforce on PFI. Montague extolled the virtues of PPP at an annual conference for Public-Private-Partnerships in 1999. He proclaimed: “It is not enough for public authorities to decide what sort of deals they want, they must also be aware of what sort of deals the private sector is willing to do”. According to Red Pepper, Montague helped John Major draw up the privatisaton of British Rail. In 2000, John Prescott made him a member of the Strategic Rail Authority (SRA), which was designed to help fix the privatisation of British Rail.
During a House of Commons debate on the Strategic Rail Authority in May 2004, Joan Walley, MP asks “Why is the SRA not accountable for the way in which it runs its services? Paul Marsden MP asks: “Why has he not been able to find a way to stop the apparent abuse of taxpayers’ money? ” At a later date, the National Audit Office stated: “the taxpayer could be exposed to further financial risk of £360 million”. Montague is also chair of British Energy. Montague received a bonus of £100,000 for restructuring funded by the taxpayers. The £5bn restructuring plan leaves the taxpayers open to take on further liabilities to the tune of £1.7bn with a further £3.9bn for the decommissioning of nuclear power stations. The National Audit Office blamed the Government for leaving taxpayers holding the liabilities for decommissioning its nuclear power stations. The total cost of cleaning up over 50 years of nuclear waste from UK power stations and military projects will rise to over £56bn according to Sir Anthony Cleave, who is chair of the Nuclear Decommissioning Authority. Mr Montague is currently promoting the use of nuclear energy instead of other viable alternatives.
Crossrail has failed to make the case for why two-thirds of London should pay for a line that will support a third of London’s richest community most of whom are commuters. The City and Canary Wharf, who are the major beneficiaries, previously offer to contribute towards Crossrail. However, support has been lukewarm since the Crossrail Bill has been presented to Parliament and the Government has assumed responsibility for the publicly funded scheme. The last reported offers from the City and Canary Wharf included a surcharge of 9million for 30 years with options to reduce the duration if fare revenue exceeds expectations. The Government claims it will not contribute more than £2billion. But a study produced by the Department for Transport proposes to use council tax rises. This will leave Londoners paying £8billion over 30 years. Crossrail has failed to prove the viability of what is fast becoming an exclusive scheme beneficial to City personnel, which means it, will be producing an annual £350-400m deficit. Claims that the likely revenue will be £200million a year still leaves the public to pay for the interest payments on a shortfall of at least £4-5billion with little or no mention of operational costs.
Privatisation particularly transport projects have proved to be poor value for money for taxpayers and users alike. Londoners have endured 226 delays caused by privatised companies Metronet and Tube Lines. Both were fined only £15.6million despite receiving subsidies worth more than a billion from taxpayers. Montague also led the finance team, which signed the Metronet London Underground Public Private Partnership. This is on top of £109 million paid to consultants and lawyers involved in the part-privatisation of the tube. The Government has already paid Crossrail start up subsidies of £300million to ensure it obtains necessary powers and meets a timetable for a bill deposit. Crossrail previously received £144 million from then Conservative Minister for Transport Paul Channon in 1989. Money was spent on an office block in Victoria and well-paid consultants.
The flaws of the Crossrail scheme are outlined in detail on the alternative rail scheme promoter Superlink, who state: “Crossrail's £6.5 billion funding gap can only be funded with additional taxes. Superlink £3.2 billion funding gap is only half as large, and could be funded without special new taxes. It only delivers 2.3% additional commuters into London. It delivers a 7% to 10% increase in commuting capacity. Crossrail only relieves congestion on a few routes, and actually worsens congestion and may affect performance on some National Rail routes. [Crossrail] has not even figured out how they will share tracks with existing freight and passenger services.”
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