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/news/uk-england-london-26276455
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Barclays 'fails to fund' London cycle hire expansion | Barclays 'fails to fund' London cycle hire expansion |
| (about 5 hours later) | |
| London's cycle hire scheme underwent a major expansion last year without a penny of funding from its sponsor Barclays, it has been revealed. | London's cycle hire scheme underwent a major expansion last year without a penny of funding from its sponsor Barclays, it has been revealed. |
| A document from August 2011, released via a freedom of information request, showed Transport for London (TfL) had expected £10m from the bank towards phase three of the scheme. | A document from August 2011, released via a freedom of information request, showed Transport for London (TfL) had expected £10m from the bank towards phase three of the scheme. |
| The roll out to south-west London was partly funded by local councils. | The roll out to south-west London was partly funded by local councils. |
| TfL said they still "expect to receive a contribution" from Barclays. | TfL said they still "expect to receive a contribution" from Barclays. |
| Barclays said they were were in discussions to finalise a "legal amendment" to the existing contract. | |
| 'Free advertising' | 'Free advertising' |
| The document obtained by the website MayorWatch, showed Barclays had pledged a further £10m towards the expansion, but the deal was never formalised by TfL. | |
| The deal signed by Barclays in 2010 secured £25m in funding for the first two stages of the scheme. | The deal signed by Barclays in 2010 secured £25m in funding for the first two stages of the scheme. |
| London Assembly members have asked the Mayor of London, Boris Johnson, why Barclays' logo appears on the scheme's livery in Wandsworth, Hammersmith and Fulham, Lambeth and Kensington and Chelsea. | London Assembly members have asked the Mayor of London, Boris Johnson, why Barclays' logo appears on the scheme's livery in Wandsworth, Hammersmith and Fulham, Lambeth and Kensington and Chelsea. |
| Labour member Val Shawcross said the company had been handed "at least £10m of free advertising". | Labour member Val Shawcross said the company had been handed "at least £10m of free advertising". |
| She said: "Not only does this undermine the whole point of bringing in sponsors to part-fund public transport projects, but it appears London boroughs - and their council tax payers - have had to stump up the missing money." | She said: "Not only does this undermine the whole point of bringing in sponsors to part-fund public transport projects, but it appears London boroughs - and their council tax payers - have had to stump up the missing money." |
| 'Expected contribution' | 'Expected contribution' |
| Hammersmith and Fulham Council, Lambeth and Wandsworth councils collectively paid around £4m to the expansion, which took place in December. | Hammersmith and Fulham Council, Lambeth and Wandsworth councils collectively paid around £4m to the expansion, which took place in December. |
| BBC London's political correspondent Tim Donovan said the rest of the money came out of TfL's budget. | BBC London's political correspondent Tim Donovan said the rest of the money came out of TfL's budget. |
| Martin Hoscik, from MayorWatch, said: "The new document makes it clear that Barclays was expected to provide £10m for the third phase expansion and actually they provided... nothing. It looks like they benefitted from taxpayers PR." | Martin Hoscik, from MayorWatch, said: "The new document makes it clear that Barclays was expected to provide £10m for the third phase expansion and actually they provided... nothing. It looks like they benefitted from taxpayers PR." |
| In December, it was announced that Barclays would not be renewing its sponsorship when their current deal ends next year. | In December, it was announced that Barclays would not be renewing its sponsorship when their current deal ends next year. |
| Graeme Craig, director of commercial development at TfL, said: "The heads of terms document was agreed and signed by TfL and Barclays in 2011 and set out the initial proposal for the additional £25m extension of the cycle hire sponsorship, subject to the agreement of a formal contract. | Graeme Craig, director of commercial development at TfL, said: "The heads of terms document was agreed and signed by TfL and Barclays in 2011 and set out the initial proposal for the additional £25m extension of the cycle hire sponsorship, subject to the agreement of a formal contract. |
| "They do, however, remain the sponsor of the Barclays Cycle Hire scheme until 2015 and we expect to receive a contribution from them for the phase three extension." | "They do, however, remain the sponsor of the Barclays Cycle Hire scheme until 2015 and we expect to receive a contribution from them for the phase three extension." |
| Barclays said it had agreed with TfL to pay £25m for phases one to three of the project until August 2015, if a new sponsor was not found before that date, this deal included a written commitment to pay on a pro-rata basis for the phase three expansion. | |
| "This commitment was made in writing ahead of the Phase 3 launch and Barclays and TfL are in discussions to finalise a legal amendment to the existing contract accordingly," a representative of the bank said. | |
| "Barclays has offered to exit early from the sponsorship agreement to enable TfL to secure a new sponsor at the earliest opportunity." |