In January, ahead of the East West Rail consultation closing, Richard wrote to the Secretary of State for Transport requesting details of the business case for East West Rail and any available updates to the projected costs of the project.
Richard Fuller said:
I have now had a reply from the Rail Minister, Lord Hendy, who addresses some, though not all, of the questions I raised.
One of the most startling points in his letter is the increase in projected costings from an upper level of £5.34bn to £6bn, an increase of £660m in a little over 18 months. I think we are all sufficiently scarred by the HS2 experience to assume that the final demand on taxpayers will be far north of the current figure.
The business case seems to be as elusive as ever and whether it is standard practice as the Minister claims or not, it does seem convenient and almost designed to avoid financial scrutiny that the full business case will not be published until planning consent is secured.
Finally, in response to the Benefit Cost Ratio (BCR) of EWR which stands at a pitiful 0.3 meaning that taxpayers see a benefit of 30p for every pound invested, I find it extremely optimistic to believe the claim that the railway will boost the region's economic output by £6.7m annually. This seems a somewhat arbitrary figure which is being used to boost the numbers and create the illusion that EWR will ultimately provide value for money.
Is it just me or does anyone share my cynicism?
The orignal letter from Richard can be read here. The reply from the Minister can be read here.
