Item 4 London Assembly 15 September 2004 Forty-Fourth Mayor’s Report to the Assembly Author: The Mayor This is my forty-fourth report to the Assembly, fulfilling my duty under Section 45 of the Greater London Authority Act 1999. It covers the period from 2 July – 1 September 2004. Transport 2004 Spending Review On 20 July, the allocation of funds for transport under the 2004 Spending Review was made with the Secretary of State for Transport granting permission for TfL to borrow nearly £3 billion over the next five years. This will allow the Olympic projects to proceed, including the East London Line. This groundbreaking package will also help give a degree of assurance over funding provision for future projects as it gives TfL certainty over the next 5 years. I also welcomed the announcement that Alistair Darling MP, the Secretary of State for Transport will proceed with a Hybrid Bill for the construction of Crossrail. This announcement opens the possibility of London’s most important transport development for 40 years. Crossrail will give London the backbone of a 21st century transport system, underpinning hundreds of thousands of jobs in London’s financial district and sustaining London’s position as the world’s leading international financial centre. There are tough negotiations ahead before Crossrail can be built, above all on funding, but the Government is to be congratulated in the strongest terms for having the courage to take this vital step for London. Crossrail’s interchange with the rebuilt and extended East London Line, which was also given the go-ahead in the Transport Secretary’s statement on the Government’s five year transport plan and transport Spending Review, will give easy transport access from London’s most deprived areas to its most dynamic business district. This is not just a transport scheme but also an economic strategy for London. TfL can now proceed with the East London Line extension, transit schemes in East London and Greenwich and extensions to the DLR and its services and is a major boost to London’s 2012 Olympic bid. However, the great majority of the extra funding announced in the Transport Spending Review would be going to Network Rail to deal with the disastrous consequences of rail privatisation. As a result TfL had not secured the extra revenue resources that its successful track record merited and would face some difficult decisions in finalising its business plan. It is excellent news that the Government has accepted my proposal that TfL should take over construction of the urgently needed East London Line extension and agreed the borrowing approval we need. It also shows the total commitment of the Government and I to London’s Olympic bid. Further to this announcement on 17 August, I also confirmed that Wapping and Rotherhithe tube stations will be retained in plans for the East London Line extension. Following discussions with the East London Line Extension project team, it is now planned to keep both Rotherhithe 1 Item 4 and Wapping stations open after the project is completed in 2010. The Government's recent announcement that Transport for London can take forward the project is a major boost for east and south London and it is now even better news for those living near these two stations. Both Wapping and Rotherhithe residents have been actively campaigning to keep these stations open and I am delighted to reassure both communities in London that their stations will be safe. 2004 Rail Review I welcomed the Department for Transport's announcement on 15 July of greater powers to TfL to specify and upgrade London's rail services within, and potentially beyond, the Greater London Authority boundary. The publication of the Government’s Rail Review in July provided the potential to bring London’s transport modes closer together into a unified structure in the future This will give TfL more responsibility for passenger services running into and through London. Devolution has already delivered less congestion and better buses for the capital and this is a real opportunity to deliver improved services for rail passengers. Under my plans, and with the Government's support, London would have a truly integrated transport network run with the single aim of putting passengers first. Congestion Charge Western Extension On 11 August I published a revision to my Transport Strategy, which allows for a possible westward extension of the congestion charging scheme. Before publishing that revision I considered TfL’s report to me of its extensive consultation, involving over 100,000 respondents. The principal proposal contained in the revised Strategy is that TfL will investigate the potential for an extended congestion charging scheme covering the area broadly bounded by Harrow Road, Scrubs Lane, West Cross Route, Earls Court One Way System and Chelsea Embankment, and that subject to those investigations, and subject also to the availability of funding, TfL will make an Order extending the present scheme to include areas to the west of the present charging zone. The proposed western extension to the congestion charge is a logical step in the development of the zone but should not be undertaken without further investigation and consultation, in order to address the many issues that were raised during the consultation. TfL will hold a series of meetings with local boroughs and it will then consult more widely on the relative merits of the alternative boundary and resident discount zone options, and other matters. The proposal to extend the congestion charging zone is clearly controversial. However, consultations of this type, while extremely useful, tend to draw responses primarily from those opposed to whatever is being consulted upon. I remember that prior to the introduction of the existing congestion charging scheme people were opposed to it, but since its launch there has been a marked increase in acceptance with most people supportive of it. The earliest TfL could make an Extension Order would be in early 2005 with possible confirmation in Summer 2005, and the earliest a scheme could be operational would be in late 2006. The actual implementation date, however, would depend upon a number of issues, including the outcome of the consultation, satisfactory procurement of new and additional services, and availability of funding. Any further proposals would be carefully considered by me before any confirmation by me of a TfL Extension Order as is required to allow it to come into effect. 2 Item 4 White City Derailment Final report On 19 August, London Underground published the Final Report of the investigation into the derailment at White City that occurred on 11 May this year. The report concluded that the main contributory factor was the failure of Metronet to comply with specific measures introduced by LU in regards to the replacement of specific rails during maintenance in areas with specific characteristics. These measures were brought in as a result of the Camden Town derailment in 2003. Inadequate communication and management within Metronet was identified as a main factor in its failure to fully comply with these new measures. The report also found that LU did not adequately monitor and confirm with Metronet that the new measures were being property implemented. In all, the report made nine recommendations that aim to address all the underlying causes of the incident, and London Underground will be working very closely with Metronet and the other Infracos to ensure that lessons are learnt from this incident and will ensure that the recommendations in the report are implemented. Strike Talks The threat of further strike action on the Underground was reduced on 11 August when Aslef accepted the latest two-year deal over pay and conditions. This is a welcome move and TfL look forward to securing the agreement of all the trades unions including the RMT to the two-year deal at the earliest opportunity. Major Transport Projects Map On 6 July, a new map was launched including all the major transport projects planned for the next ten years including Crossrail, the East London Line Extension, Thameslink 2000 and DLR extensions. Improved transport infrastructure is vital for London to maintain the international competitiveness upon which our prosperity depends. This map shows how London’s transport system will look in 2016 if we make the essential investments in the city’s transport infrastructure. These investments are necessary to sustain London’s growth and prosperity and will enhance the economic growth prospects and productivity of the entire United Kingdom. This map represents the future of London’s transport system and shows what we need to do to ensure our city’s future success. TfL Board Appointments On 6 July, I announced my intention to appoint ten people to the TfL Board, plus three special advisors. I also announced that I shall continue to chair the Board, reaffirming my commitment to improving transport across London. The appointments to TfL Board are as follows: • Dave Wetzel, who has extensive experience in the transport field and is currently vice- chair of the TfL Board • David Begg, chairman of the Commission for Integrated Transport and Director of the Centre for Transport Policy at Robert Gordon University, Aberdeen • Stephen Glaister, Professor of Transport and Infrastructure at Imperial College London 3 Item 4 • Kirsten Hearn, who has extensive senior level experience in public service, training, community action and creative arts • Sir Mike Hodgkinson, Chairman of the Post Office • Susan Kramer, who has held a range of senior positions in London's finance and business sector and was the Liberal Democrat candidate for Mayor of London in the May 2000 election • Paul Moore, vice-chair of transport at the GLC from 1981 to 1986, and also has wide trade union experience • Sir Gulam Noon, chairman of Noon Products Limited • Patrick O'Keeffe, Transport and General Workers Union Regional Organiser for the London and South East • John Ormerod, who is a former senior partner at Deloitte.