3 The role of the PPP Arbiter
43. We have commented in previous reports that the
PPP Arbiter should be given more power to collect rigorous and
comparable data about the PPP. It remains our view that the gathering
and publication of information by the PPP Arbiter will generally
tend to benefit all interested parties: London Underground as
client, the infracos as suppliers and the public as users. The
Government should also find such information useful for monitoring
the benefits and costs of the agreement. Any reporting process
must be seen as neutral and be designed to provide the information
that both the infracos and London Underground require to address
performance issues and to prepare for periodic review. In 2008
we asked the Government to make the necessary changes to the PPP.[44]
44. In its Response to our Report the Government
argued that changes to the PPP Arbiter's powers were not necessary
and, in the two years following Metronet's demise, the Government
has taken no action in this area. During this inquiry, the Minister,
Rt Hon Sadiq Khan MP, told us that if the role of the Arbiter
was to change, Parliament would have to amend the 1999 Greater
London Authority Act. The Minister did not believe any such change
was necessary in the short term:
I am confident that Tube Lines are transparent with
the Arbiter, with ourselves and with TfL…I am confident that
the regime set up with the Mayor, elected by Londoners, to have
independent scrutiny will lead to greater transparency and more
information being passed to us, to give us the reassurance that
you rightly say we need to have.[45]
TfL and London Underground are similarly reluctant
to see the Arbiter's powers increased. They regard the new monitoring
arrangements, which have been introduced with the co-operation
of the Department, as adequate.
45. In contrast, Tube Lines told us that it wishes
to see the Arbiter's role extended to monitoring the work of TfL
on the former Metronet lines. Tube Lines argues that if the PPP
Agreement's objectives are to be met, then all those involved
in the work must follow clear, accurate, transparent, and relevant
reporting procedures.
46. As we said
two years ago, the Arbiter should be able to carry out an annual
review of all PPP contracts including those transferred to London
Underground. This would help companies address performance problems
and prepare for periodic reviews. We are disappointed that the
Government has not implemented our recommendation to bring greater
transparency and accountability to all of the work being carried
out on the Underground network. We call on the Government to reconsider
its stance.
44 HC (2007-08) 45 Back
45
Q 129 Back
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