Transport Spending (Supplementary) [2]

Session date: 
November 19, 2003
Question By: 
John Biggs
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

I welcome the comments that were made last week by Jay Walder (Managing Director of Finance and Planning for Transport for London). I do not know whether you are able to add anything to these about the prudential borrowing regime, which is being introduced. It is a very boring subject on the face of it, but it does give far greater flexibility to city government. Do you welcome that? Do you envisage it being used flexibly to help develop London's transport, sooner rather than later?

Supplementary To: 

Answer

Answer for Transport Spending (Supplementary) [2]

Answer for Transport Spending (Supplementary) [2]

Answered By: 
The Mayor

When we had an away day of TfL officials and board members, we went through the document. I said the real key to this `whodunnit" is the boring two or three paragraphs on the prudential borrowing scheme. We are being given a steer by Government that this could be the way forward for all of our smaller, and by smaller I mean under £500 million, transport projects. That is fine. If the government are going to give us the go-ahead on this, so that we do some upfront funding, which means a fair bit of pain in the short term, but then you get these things levered in, so in effect glorified Private Finance Initiatives (PFIs), we will run with that. We will take any prudential borrowing regime they want to give us.