Update on the London Underground and the public-private (PPP) partnership agreements - Transport Committee Contents


Examination of Witnesses (Questions 79-118)

MR STEVE GRANT, MR BOB CROW AND MR TIM BELLENGER

9 DECEMBER 2009

  Q79  Chairman: Good afternoon. Would you please identify yourselves for our records.

  Mr Crow: Bob Crow, General Secretary of the RMT.

  Mr Grant: Steve Grant, District Organiser, ASLEF.

  Mr Bellenger: Tim Bellenger. I am Director, Research and Development, at London Travel Watch, the statutory consumer body representing the interests of customers in London.

  Q80  Chairman: Thank you. Would you say that safety is being compromised by London Underground and Transport for London in an effort to reduce costs?

  Mr Crow: If you look overall, the makeup of the industry leads to the same situation we had, basically, under Railtrack and before Network Rail brought the infrastructure companies back in-house. What you have is a multitude of contractors. Even though there is only one company now which is in the private sector doing work for the Jubilee, Northern and Piccadilly Line, there are a number of subcontractors and agencies that live off those contractors doing work. When you have basically more cooks in the kitchen than you need, then in our opinion it is going to lead to a different kind of layout for safety and certainly we believe that safety is being compromised. What you need to run the railways is a bit like a ship really: the captain is in charge and when he makes a decision it is filtered through straightaway to the shop floor. Under the old London Underground regime, the managing director would say change a light bulb at Rickmansworth Station and the person would change the light bulb. Now he has to ring a contractor up, who rings a subcontractor up, who rings an agency up, which then rings a handyman up out of the Yellow Pages to go and put in a light bulb.

  Q81  Chairman: What has happened to safety levels on the network since we last looked at this in 2008? What is the record of what has happened?

  Mr Crow: On staff being injured?

  Q82  Chairman: Yes, staff or members of the public.

  Mr Crow: I think it has been constant, to be honest with you. To be truthful, I could provide figures of recorded instances where they have taken place. What is quite clear is that when you have a number of processes in place—because what you have is one overall policy from London Underground who get their policies overall arching from Transport for London, and then you have policies for Tube Lines and then you have policies for all the stream of contractors who you have got out there as well—you have a number of catalogues, basically, for staff working for different employers, all doing the same job at the end of the day and supposed to be delivering a service for London Underground.

  Q83  Chairman: Does any other panellist want to comment on safety levels for either passengers or people working in the system?

  Mr Grant: Since the privatisation seven years ago, immediately after there were a number of derailments. My members, predominantly train operators, deal with the interface between wheel and rail and these contractors my colleague Mr Crow has talked about. Even as recently as a few weeks ago, with the Jubilee Line upgrades, the communications between the managers of London Underground and the managers of the contractors, subcontractors, et cetera, broke down to a point whereby, on a recent weekend where upgrade work was being done, there was no passenger service—again major disruption to customers—and there were lives being put at risk because of the breakdown in that communication. A lot of the issues arising that my union gets are dealing with those issues.

  Q84  Chairman: Mr Bellenger, do you have any observations?

  Mr Bellenger: We do not have any particular evidence that safety of passengers has declined since the introduction of the PPP, but then you have to realise that all sorts of other things are going along in parallel to the PPP which may mean that safety is staying constant or may in fact have reduced.

  Q85  Chairman: What would you say about the passengers' experience since PPP started? Has it become a better or a worse experience?

  Mr Bellenger: In one sense the "Passenger has Paid the Price" for the PPP—as a different acronym. Passengers are certainly experiencing a better quality of service in some respects because the investment programme is going in—and that is something we have always argued for—but it is not necessarily easy to distinguish whether the PPP is responsible for that because there are other things that are being paid for as part of the investment programme which are outside of the PPP. That means that you cannot necessarily attribute wholly any improvement to the PPP or not. Certainly passengers are paying the price at the moment in terms of the additional costs that the PPP is currently experiencing. Because of that passengers are likely to have to pay lot more money in their fares in the New Year to bridge the gap between the amount of money that Transport for London needs to pay out on the PPP and the amount of money they have coming in, and they are also paying the price in terms of disruption to the network, particularly on the Jubilee Line, where the numbers of closures has got to some unacceptable levels. We certainly believe that there are other and better ways that such disruption could be planned and also communicated to customers.

  Q86  Chairman: What are those better ways?

  Mr Bellenger: To give you an example, one of my correspondents was a regular user of the East London Line. When the East London Line was proposed for a blockade, she complained about the blockade but she knew about it six months in advance and was able to plan her life around that blockade. She has again contacted me now that we have the extensive Jubilee Line closures—because she lives in that sort of Canada Water area and she uses the Jubilee Line at weekends. The thing is that she cannot plan her life properly now because she does not know whether or not the Jubilee Line is going to be available, whether she is going to have to use a replacement bus for all or part of her journey. Essentially she is more dissatisfied now, because she does not know what is going to come to happen on the weekend. At least when she had a blockade, she knew that for four years the East London Line was going to close and she could plan around it. We have urged in our evidence to you and to the London Assembly on their previous inquiry on this that Tube Lines and London Underground look at long-term blockades perhaps as quicker way of delivering the upgrade, so that at least passengers know, if they cannot travel between Kings Cross and Hyde Park Corner, that they cannot do that, but they have a set amount of time in which that work is going to be completed.

  Q87  Mr Hollobone: Mr Crow, if we were to ask you how many people did it take to change a light bulb on an underground before and now, what would your answers be?

  Mr Crow: One person, the same as it was before.

  Q88  Mr Hollobone: But you were indicating that there are certain steps you have to go through now in order to do that.

  Mr Crow: Absolutely. I do not suppose that the light bulb causes the big problems out there, but certainly changing high levels of track components and refurbishments of stations certainly do cause problems. With most of the companies now concerned the first thing they do is run to see what their contract says, more than what they used to, say, when the managing directors was making an instruction do it.

  Q89  Mr Hollobone: In its evidence to this Committee the Department for Transport has justified the PPP programme by saying that the costs that have been incurred have been less than the costs incurred on the Jubilee Line extension or the Central Line upgrade. They quote figures saying that with regard to the Central Line upgrade cost overruns were up 30% and significantly behind schedule—six years in the case of the Central Line—whereas with Metronet, even though the costs were, as we have heard, in the hundreds of millions, the costs were in the range of 4% to 10% against the total value of the investment. What is your response to that?

  Mr Crow: If Metronet did so well, how come they are not around any more? It must have been some good business if they went out of business. The reality is that the Metronet situation, when they talked about upgrades, was that they were concentrating on station modernisation. That is where they concentrated their efforts. I have to say station modernisation is fantastic, it is nice to sit on a station and look at it all day and say how nice and pretty a station looks, but the majority of passengers that I speak to every day when I travel on the tube want the train to come on time and they want to have a seat to sit on on the train.

  Q90  Mr Hollobone: In this dispute between TfL and Tube Lines, where does the balance of responsibility lie in your view?

  Mr Crow: It is quite clear that Tube Lines, for example, are the ones who have not carried out the work they said they had done and which they should not have said they had done. The reality is they are supposed to have finished all the upgrades by the end of this year, and now we are talking about upgrades to 2010 and in certain parts of the spring the Jubilee Line being shut down for perhaps three or four days. I am not a cynic but it is strange why the Chief Executive has left the company if it is doing so well.

  Q91  Mr Hollobone: If you had to split the responsibility in percentage terms between the two—

  Mr Crow: I am sorry?

  Q92  Mr Martlew: The Chief Executive is behind you.

  Mr Crow: I thought you were a heckler.

  Q93  Chairman: Can we keep to the questions.

  Mr Crow: I am being distracted, I am sorry, Chairman.

  Q94  Mr Hollobone: If you had to split the responsibility in percentage terms between Tube Lines and TfL, would it be 100% Tube Lines and nothing TfL or would there be a balance?

  Mr Crow: The whole lot needs to go to TfL. It is one system. We want a joined up system. If you have Jubilee, Northern and Piccadilly Line, it sounds nice—it is three deep level tubes that they broke away for one contract, and then they split the other two contracts up, which was the sub-service lines, and then the other lines in three separate contracts, and Metronet got the two contracts put together—but they all have interfaces. The Jubilee, Northern Line and Piccadilly Line, everywhere you go along that route, will meet somewhere with the other contracts. The railways can only be run on the basis of being joined up. It is one operation. You cannot have a ship and then turn around and say that the engine room is being run by someone else and the navigator is being run by someone else and the people doing the food are someone else. It is all on board together. That is why the railways have to be joined up. They should be run democratically by Transport for London and the people who run Transport for London should have a clear, constant direction of line of running the system at the end of the day by the Chief Executive of Transport for London. He or she should be responsible for running that network.

  Q95  Mr Hollobone: Do you think Tube Lines is going the same way as Metronet?

  Mr Crow: Absolutely, and the quicker the better, to be honest with you. The sooner Tube Lines are back in London Underground and we all have one London Underground system together, then the passengers will have a better railway.

  Q96  Mr Hollobone: How long do you give it?

  Mr Crow: It is not for me to say. They have never shown us the contracts. That was left to all these whiz kids who said they had it all right, but it looks like they have got it all wrong.

  Q97  Mr Hollobone: Do I take it Mr Finch is not on your Christmas card list?

  Mr Crow: I have nothing against Mr Finch. He is a nice personable bloke, but obviously he has found his place better in National Express than he has with Tube Lines.

  Q98  Mr Martlew: Obviously the Jubilee Line has a very advanced signalling system and it will increase the capacity. Has the agreement been reached between the Trade Unions and London Underground on the operation of this and has the work been done on the training of the staff? Has the decision been taken or not how the training is going to be done?

  Mr Grant: We have major issues with London Underground on the training of staff. These trains will eventually be totally automatic, like Victoria, but with the upgraded system, as you say. The comparison was made earlier between Central Line. When I was a driver I went through all that. It was an off-the-peg system; it was not started from scratch as this system is. Obviously any new system will have its problems and we do have concerns over the length of training and the quality of training. London Underground has had some good training over the years in safety, which has kept down the numbers of incidents, lost time injuries, deaths and accidents amongst staff and customers. To answer your question, no, we are not happy with it and there is major disagreement.

  Q99  Mr Martlew: We have had evidence from the Mayor and the Chief Executive that this was not a problem, that it had all been sorted out. That is not the case, is it?

  Mr Grant: From my point of view, dealing with the train operators who are the trainers and the managers who are the trainers and the staff who are being trained specifically on the Jubilee Line, I could send this Committee a whole year's worth of emails, complaints and concerns over the training quality and the content of that training.

  Q100  Mr Martlew: This will be to London Underground.

  Mr Grant: We work for London Underground, yes, sir.

  Q101  Mr Martlew: When you do have the training on the line, does it mean that the line for some of the time will have to be closed to the public?

  Mr Grant: Tube Lines in this particular case provide the trains and the signalling systems, and London Underground provide the shutdown, or blockade as my colleague here calls it. That training is then done for hands-on training by drivers, but we are arguing over the way that is being done. Just to slightly digress, on the comment about overruns, whether it is for weekends or for six months does not matter; the most annoying thing for the person concerned of Croydon, or whoever the person was, is when come Monday morning the Jubilee Line is not back up and running because of the overrun of the engineering work. That causes even more major disruption to hundreds of thousands of Londoners. It is my belief that it is easier for the companies to pay the fine of the overrun and get the work completed and of course the people of London are not compensated for that delay.

  Q102  Mr Martlew: Mr Grant, you have been very helpful. Do you think that the training will be completed for the drivers in time for when Tube Lines say that the job will be completed?

  Mr Grant: In my view, no, sir, because the argument is over the provision of the shutting of the line to enable drives to be trained in the signalling system that they wish to run.

  Q103  Mr Martlew: Basically you are going to have to close the line to train the drivers.

  Mr Grant: Yes. In the majority respect of physically driving, yes.

  Q104  Mr Leech: Is the performance of Tube Lines any better than Metronet from a passenger perspective?

  Mr Crow: On what basis? Passenger demands?

  Q105  Mr Leech: No, the whole passenger experience.

  Mr Crow: The passenger does not see Tube Lines as such. If the passenger gets on the train in the morning or in the evening and there is a delay, it is London Underground that announces that there is a delay because of a signal failure here or because of a track defect there, but the average passenger just wants to make sure that there are no delays. Tube Lines do not make that announcement. I am not saying they should make that announcement, because London Underground is responsible for the operation of the railway, but London Underground have no say whatsoever over that signal failure or track component that goes wrong on the Jubilee, Northern and Piccadilly Line. It has on the Metropolitan Line. It now has the responsibility to say what is wrong. Richard Parry was here earlier on. If there is a problem now on all the lines except for the Jubilee, Northern and Piccadilly Line, the Chief Executive can just turn around and say what has gone wrong. Now he has to ask his counterpart in Tube Lines, who has to go through the entire programme down to the bottom to find out what went wrong on that piece of track. I would say that people are feeling very, very annoyed. Especially at this time of year when people are Christmas shopping, the only day they probably have off is a Saturday or a Sunday and they are faced then with delays. Those people going to Wembley or to the O2 are faced with delays for the concerts and circuses and things they have on at weekends. It is causing massive disruption. You only have to be around the East End of London, around Stratford way, to see the absolute chaos that takes place with people trying to shop on a Saturday and Sunday now when there is engineering works.

  Q106  Chairman: Mr Bellenger, is there anything you would like to add on this topic of the passengers' experience?

  Mr Bellenger: For a start, the lines are obviously different, and that has an effect on the ability to compare like for like.

  Q107  Mr Leech: Are you not able to compare like for like when there are no works going on or when there are works going on and comparing different lines, so comparing one line which is run by Tube Lines where there is work going on and one line when there was work going on when Metronet were running that particular line? Have you done no work on that?

  Mr Bellenger: We, as such, have not done any work on that, but I think the thing to note is that if you close one part of the system there will be an effect on other parts of the system which may be run by the other contractor; for example, if there is a closure on a Tube Lines part of the network, then it may well have a knock-on effect on something to do with that run under the old Metronet system. It may be quite difficult to parcel up the blame between the two.

  Q108  Mr Leech: If there is more than one company running lines on the Underground it is very difficult to recognise whether or not one is doing a better job than another.

  Mr Bellenger: No. Because they are different lines, there will be different specifications there depending on the type of services provided.

  Mr Grant: To be fair to Tube Lines—the question is: "Is Tube Lines better than Metronet?"—there are two examples I could give you in the affirmative. The axle boxes on a Piccadilly Line train that kept going up in flames have been replaced. The 7th Car Project on the Jubilee Line has been delivered before target. There are two examples, but you would have to look at the progress of Metronet, a collapsed company, and the present Tube Lines trying to deliver the upgrade work and closures.

  Q109  Mr Leech: If there is more than one company running different lines on the Underground, it is difficult to assess whether or not that company is doing a decent job in terms of passenger experience, because of the interface between the different companies running the lines.

  Mr Crow: Everything is different. It is not apples and apples here. What you have is one company trying to bring in on one line a signalling system, where another company may not be bringing that signalling system in. It may be that the station that they are repairing has problems because it has a big drain going halfway through it once they start digging up the concrete. It is very hard to put that into perspective. The only way you would be able to do it is to see the amount of passenger miles that the company is supposed to run and how many they are delivering as a result of neglect of engineering delivery.

  Q110  Mr Leech: In terms of the future, whether it be in public ownership or private ownership, do the three of you think it is better to have one operator for the whole of the network?

  Mr Crow: I do, yes.

  Mr Bellenger: From the passenger perspective, the passenger does not care whether there is a PPP in place or a PFI or any other kind of contract. They want their service to be delivered. They want a service which is safe, reliable, clean, uncongested and, above all, open. They do not care whether it is Metronet running the line or whether it is Tube Lines running the line. Their contract is with London Underground and it is up to London Underground to manage the relationship with Metronet or with Tube Lines to deliver the service that passengers want.

  Q111  Chairman: Does having more parties involved in delivery make it more difficult for London Underground?

  Mr Bellenger: It will always make it more complex, yes, it will.

  Mr Grant: Like Bob, I think it should be one employer. I have gone from the GLA and Sir Horace Cutler through to Ken Livingstone. We have had London Underground with one person on the station called the Station Master; now you have a supervisor, a group station manager, a junior manager (trains). It is just more Chiefs than Indians. I do not care whether it is a TfL or London Underground or one private employer, but there needs to be one sole boss. Knowing customers, being a guard for seven years myself, if a monkey ran down the track and stopped and it was cheap, they would get on its back to get to the next station. That is all they are interested in.

  Q112  Sir Peter Soulsby: Obviously Bob Crow and Steve Grant have argued that it should be reintegrated—in Bob's case particularly strongly—into a publicly operated entity, but until that happens, I was asking earlier about the role of the PPP Arbiter and the way in which that might be developed. I wonder if you have any views as to whether that is a mechanism that could be made to bring more transparency and order into the system as it is at the moment.

  Mr Crow: The Arbiter at the end of the day is a person who, in my opinion on this PPP, has to decide if the contract is being carried out to the specification, as laid down and given to London Underground before the PPP came in? If you remember what happened was that the Mayor, who is now responsible—not the individual, but the Mayor who is now responsible—was handed the contracts and never had a chance to see them. That is what the specifications are on. Now, as the time evolves and we are into seven years, 14 years, 21 years, 28 years and 30 years, those contracts will start coming to an end and new specifications will go in there, so the Arbiter is going to have to decide if the laid down specification is being carried out correctly by the contractor concerned, and if he is not carrying out that contract then who pays for the lost time. Either Tube Lines is going to pay for it or Transport for London is going to pay for it. Really basically he is just the Arbiter who is sitting there and weighing up whether the contract is in favour of the one employer or Tube Lines who carry out the work for them. There is quite clearly a massive difference now in the amount of money that is owed between Tube Lines and TfL.

  Q113  Sir Peter Soulsby: Does the Arbiter have the power and responsibility to do what needs to be done?

  Mr Crow: Money-wise he has. There will be different kinds of specification regarding safety and one thing and another. Quite clearly the Arbiter has the power, and really the death knell for Metronet is when the Arbiter says that Metronet has to pay the money back. That is when they have to liquidate.

  Mr Grant: You asked if they have a role in transparency. At the present time they are having a role in negotiating between the difference between London Underground and Tube Lines over the costs. Previously, in the last tranche, London Underground and Tube Lines and Metronet, as was, used to manage to resolve or work out their differences at many levels of strata of the business between them. Now, whether it is because there is more pressure from TfL on London Underground or whether it is the demise of Metronet—and I am not a lawyer or accountant or whatever—or whether London Underground has got more hardnosed about the contacts, Mr Finch gave evidence earlier that they are asking for variations to that contract and Tube Lines are trying to renegotiate those contracts. Yes, he does have a role at the moment. Whether that will continue, only time will tell. I am not a foreseer either, but I do believe he has a present role in trying to resolve differences. As Mr Crow said, the longer they take for someone to bang their heads together and deliver the services for the customers, as usual it will be them who keep saying.

  Mr Bellenger: Yes, there is a role for the Arbiter. The Arbiter also takes account of the needs of passengers. In all the big arguments that surround the PPP, it is the passenger who is often forgotten. Certainly, yes, we want to see the Arbiter given more power if he can do that for the benefit of passengers.

  Q114  Sir Peter Soulsby: Mr Finch earlier suggested the model might be something like the Rail Regulator. Do you think that is what is needed in this context?

  Mr Bellenger: That might be a way in which you could possibly look at that. The current PPP Arbiter was in fact the previous Rail Regulator, and I believe he developed the post in the same way that he did the Rail Regulator post, so I think there is some scope there, yes.

  Q115  Chairman: You have all been very critical about the Public Private Partnerships. Is there anything positive you have to say about them? Has anything good been delivered? Do you welcome the investment that has come in?

  Mr Crow: It is without doubt that money has gone in the industry. There is no doubt about that. You cannot hide the fact that there is new money in the industry. The trouble is that it has not gone into delivering better services; it has gone into those contractors that make up the consortium that runs Tube Lines and Metronet. Basically they were more concerned with station modernisation rather than more trains and better quality. We are now seeing a situation where, as I see it, there is a complete run down now of Tube Lines.

  Mr Grant: I would like to see someone like an Arbiter deciding that, after you and your colleagues in this House decide how much money is going to be given to railways, and leave them alone for a period of time because railways cannot exist on short-term needs. They need to plan the advance stock, they need to do maintenance. As I say, it is consistency that the railways require. The only good thing about the privatisation was the length of time the contracts were done: there was guaranteed money put in without interference, albeit there is pressure now on cutting costs, et cetera. But I have seen so many times in 35 years of working in the railway industry, this House promising something, like Crossrail, and a new government or another government or party getting in and changing that and not giving that consistency to the industry.

  Mr Bellenger: The investment programme certainly has delivered an amount of benefits. I have to take issue with that about stations. Stations are vitally important, not only as the place where people travel to to get into the system but, also, because London is a world city, if we have stations which are run down and poorly maintained they give a very poor image of our city. Certainly the investment in stations has been welcome and long overdue and I certainly would not want to go back to a situation as happened tragically at Kings Cross, where so many people died simply because of poor systems and poor maintenance and all those other things that contributed to that tragedy.

  Mr Crow: On that last point, I was not at all saying that stations should not be modernised to the same effect they should be. I am saying that the money that should be used should be used more on providing better train services than putting the new colour tiles up on stations. Regarding the fire at Kings Cross, it had nothing to do about the state of the station; it was the running down of the escalators and the non cleaning of the escalators that caused that fire there. There is plenty of these stations that are turning into shopping malls now rather than stations. There is enough shopping cities around Britain for people to go shopping. Let us have railways as a railway system and let us have shops as shops.

  Mr Grant: And those stations staffed too.

  Q116  Chairman: Mr Crow, can you tell us if any progress has been made on averting a strike on the Underground?

  Mr Crow: Pardon?

  Q117  Chairman: Has any progress been made on averting a strike?

  Mr Crow: Which strike is that?

  Q118  Chairman: There is no strike.

  Mr Crow: There are a number of issues but not with London Underground at the moment. There is a ballot going on with London Underground but there is no result back for that. There is a dispute with one of the subsidiaries, EDF, the French nationalised power company that now runs the power for London Underground, to extract a profit out to give back to its own station national company in France, which is an odd one to understand. We do have a dispute with them. We do have a dispute with Alston, another company, which subcontracts work from Tube Lines on the maintenance of the trains on the Northern Line. There are two disputes there coming up, but we hope to resolve them very quickly, Chairman.

  Mr Grant: We are not in dispute with London Underground or Tube Lines.

  Chairman: Thank you. Thank you very much for coming.


 
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