Supplementary note from Transport for
London (LU 03B)
TfL view on being handed one of three PPP Infraco
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 contractscreating a hybrid of the Government's
PPP proposals and a publicly managed solutionsolves 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
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
14 January 2001