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

Supplementary note from Transport for London (LU 03B)

TfL view on being handed one of three PPP Infraco contracts:

  TfL has said all along that the PPP will not work, and there are three main reasons:

    —  it is not value for money;

    —  it is potentially unsafe;

    —  the contracts are incredibly complex, making them effectively unmanageable.

  Whether in its entirety, or broken into pieces, this PPP does not work.

  Handing TfL one of the three London Underground PPP Infraco contracts—creating a hybrid of the Government's PPP proposals and a publicly managed solution—solves none of these problems. In fact it only creates new ones:

    —  TfL is still left overseeing a fragmented, unmanageable system, where for the vast majority of passengers, the operations of their trains will be separated from the maintenance of the rails;

    —  More than two thirds of the system will be unmanageable, and in fact have less control in them than when Mr Kiley addressed the Committee;

    —  TfL now would have the additional problem of putting into place both the management structure of and integrating one Infraco into operations, while gearing up all of the monitoring and enforcement teams needed for the other PPP contracts;

    —  Two PPP's could be more complex to manage than three PPP's covering the entire system;

    —  Potentially severe complications in industrial relations regarding working conditions, pensions etc, as now seen on national rail.

  A hybrid management system for the London Underground of the PPP and a publicly managed Infraco would compound and exacerbate the problems of the PPP itself, creating a management nightmare. This is not a theoretical experiment, this is about managing the key public transport system in this country's capital city.

  TfL has been clear from the beginning that the way to fund and manage the necessary investment in the London Underground is through a publicly-funded solution under unified management control, working in tandem with the private sector, as proposed in TfL's Alternative Management Plan for the London Underground.

  Ultimately, this makes as much sense as proposing that reforming Railtrack could be accomplished by keeping two-thirds under the existing private management and one third to a publicly accountable entity.

14 January 2001

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