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Barclays 'fails to fund' London cycle hire expansion | Barclays 'fails to fund' London cycle hire expansion |
(about 1 hour later) | |
London's cycle hire scheme underwent a major expansion last year without 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. | |
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. | 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 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." |
Following its decision not renew its sponsorship, Barclays agreed that the initial £25m could be used for phases one, two and 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. | "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." | "Barclays has offered to exit early from the sponsorship agreement to enable TfL to secure a new sponsor at the earliest opportunity." |