This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/uk-17525872
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
HS1 passenger numbers lower than forecast, NAO says | HS1 passenger numbers lower than forecast, NAO says |
(about 4 hours later) | |
The number of international passengers using the HS1 Channel Tunnel high-speed rail line is only two-thirds of what was initially forecast, a report has found. | |
The National Audit Office (NAO) said the project went ahead based on "hugely optimistic assumptions" about passenger numbers, which were not realised. | The National Audit Office (NAO) said the project went ahead based on "hugely optimistic assumptions" about passenger numbers, which were not realised. |
It also said the £6.16bn cost of the London to Folkestone line had exceeded the savings from shorter journey times. | It also said the £6.16bn cost of the London to Folkestone line had exceeded the savings from shorter journey times. |
The Department for Transport (DfT) said it had improved its forecast modelling. | The Department for Transport (DfT) said it had improved its forecast modelling. |
The NAO said passenger numbers from 2007 to 2011 were two-thirds of the level forecast when the DfT guaranteed the project's debt in 1988 to allow the line to be built. | The NAO said passenger numbers from 2007 to 2011 were two-thirds of the level forecast when the DfT guaranteed the project's debt in 1988 to allow the line to be built. |
The lower passenger numbers left taxpayers exposed to lower-than-expected income, which had been expected to repay the debt, it said. | The lower passenger numbers left taxpayers exposed to lower-than-expected income, which had been expected to repay the debt, it said. |
Value for money | Value for money |
Auditor general Amyas Morse said: "The HS1 project has brought a number of significant benefits including quicker journey for passengers. | Auditor general Amyas Morse said: "The HS1 project has brought a number of significant benefits including quicker journey for passengers. |
"However, the project went forward on the basis of hugely optimistic assumptions about international passenger numbers. | "However, the project went forward on the basis of hugely optimistic assumptions about international passenger numbers. |
"These were not realised and the department is only now developing its plan to evaluate whether the project was value for money." | "These were not realised and the department is only now developing its plan to evaluate whether the project was value for money." |
Labour MP Margaret Hodge, who chairs the Commons Public Accounts Committee, said she was not yet convinced the HS1 would prove to be value for money. | Labour MP Margaret Hodge, who chairs the Commons Public Accounts Committee, said she was not yet convinced the HS1 would prove to be value for money. |
"We will want the department to do all it can to realise the benefits and turn this sorry story round," she said. | "We will want the department to do all it can to realise the benefits and turn this sorry story round," she said. |
"It's a sad state of affairs when it comes as no surprise that HS1 was based on dodgy assumptions and bad planning." | "It's a sad state of affairs when it comes as no surprise that HS1 was based on dodgy assumptions and bad planning." |
'Well-managed' sale | 'Well-managed' sale |
The first section of the HS1 line was completed in 2003 and the full line opened in 2007 for 186mph Eurostar trains between London and Paris and Brussels. | The first section of the HS1 line was completed in 2003 and the full line opened in 2007 for 186mph Eurostar trains between London and Paris and Brussels. |
It was originally run by London & Continental Railways (LCR) and was sold to a consortium for just under £2.05bn in 2010. | It was originally run by London & Continental Railways (LCR) and was sold to a consortium for just under £2.05bn in 2010. |
In its report, the NAO said the sale had been well-managed and had removed taxpayer's open-ended support for the line. | In its report, the NAO said the sale had been well-managed and had removed taxpayer's open-ended support for the line. |
It also said the line had performed well with just 0.43% of services in 2010-11 being delayed by infrastructure incidences. | It also said the line had performed well with just 0.43% of services in 2010-11 being delayed by infrastructure incidences. |
A DfT spokesperson said HS1 was delivered "on time and on budget". | A DfT spokesperson said HS1 was delivered "on time and on budget". |
"This report points to the significant benefits it has achieved, not just for passengers, but for the taxpayer, including when it was sold for more than £2bn, far exceeding market expectations." | "This report points to the significant benefits it has achieved, not just for passengers, but for the taxpayer, including when it was sold for more than £2bn, far exceeding market expectations." |
Previous version
1
Next version