MPs doubt benefits of PPP Tube contract
Public-private partnerships on London Underground have proved costly and produced few improvements, a parliamentary report has concluded.
The Commons cross-party Transport Committee warned rises in the number of safety incidents could jeopardise safety on the Underground.
MPs raised major concerns about the management, cost and delivery of infrastructure projects.
“It is clear that the fragmentation of the system has led to inconsistent communications between the infracos and their employees,” the committee said.
“Much better consultation and communication is needed.
“We strongly support London Underground Ltd’s initiatives to establish alternative suppliers to the infracos [Metronet and Tube Lines – maintainers of Underground lines] for infrastructure improvements,” it said.
Balancing their remarks, committee members said funding for the Tube had risen substantially in recent years – nearly twentyfold [excluding cost of the Jubilee Line extension] from £44.1 million in 1997-98 to £1,048 million in the current financial year – but noted the best vehicle for that investment need not have been PPP.
Committee chairperson Gwyneth Dunwoody said: “We all knew that the Underground was starved of investment and that the PPP would bring in new resources.
“I welcome the fact that the Government is at last putting real money into the Tube. But I cannot see why it needed a PPP to do it.”
Bob Crow, RMT general secretary, said the report showed PPP was effectively dead in the water.
“The only winners from the PPP are the contractors who are pocketing £2m a week in profits at our expense,” he said.
“Several reports have already shown that privatising work on the Tube infrastructure has brought nothing but delays, excuses and increasing safety concerns.”
