Select Committee on Transport, Local Government and the Regions Appendices to the Minutes of Evidence


Supplementary memorandum by Transport for London (LU 03A)

  I am sending you this correspondence out of my profound concern regarding the future of the Underground. You have previously heard my commentary on the length and complexity of the PPP contracts—its 135 documents, well over 2,800 pages, thousands of cross references and close to 2,000,000 words. Unfortunately, its provisions leave no room for a real scope of work with defined projects, budgets and schedules. The PPP relies instead on a web of hundreds of complex formulae, operating between the commercial interests of the Infracos and the public interest of London.

  Please look at the attached letter and ask yourself if you think it is possible to rebuild the Underground with a complete reliance on these formulae. My own view, simply put, it is that this is a dangerous game.

  Transport and PFI experts overwhelmingly agree that the PPP is destined to fail. Like Railtrack, it will end up having to be completely renegotiated and restructured, with any solution far more complicated and vastly more expensive than if it had been set right at the outset.

  It is reckless to experiment with implementing such an untested scheme, and to bind London to this experiment for 30 years. I ask you to judge for yourself if this is the course that London should take at this crucial time.

Robert R Kiley

Commissioner of Transport

15 November 2001


 
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