Channel Tunnel rail link
Thursday, 04 May 2006 09:12
The economic justification for the Channel Tunnel rail link remains marginal, according to a report published today.
The publics accounts committee finds that the private sector consortium contracted to build the link miscalculated the number of passengers that would use the service.
In its 1996 bid to the government, London and Continental Railways Ltd (LCR) forecast 21.4 million passengers using Eurostar in 2004, when in fact the service saw only 7.3 million passengers in that year.
Low passenger usage has forced the government to provide increasing financial support to LCR.
Despite this, the government is going ahead with a second section of the link. The report argues that if the link again underperforms on passenger targets, the burden of cost will fall on the taxpayer.
The report has raised concern about the government's ability to manage future construction projects, such as those required for the Olympics.
politics.co.uk brings you the key quotes and reaction.