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Kramer highlights cost- effective bonds

News

LIBERAL DEMOCRAT mayoral candidate Susan Kramer this week claimed that a bond issue to finance the London Tube would cost the Government half as much as its favoured public private partnership option.

Research carried out for the Liberal Democrats by financial advisers showed that raising capital through bonds would cost only 6% a year compared to the expected 12% to 15% through the PPP, she added.

Kramer favours an independent trust to raise finance via a bond issue whose repayments would be linked directly to money raised from congestion charging, passenger ticket revenue and advertising revenue.

Liberal Democrat leader Charles Kennedy also said the unpublished study carried out last year for the Government by financial analyst PriceWaterhouseCoopers showed similar cost benefits in bonds over a PPP.

He called on the Government to make the report public.

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