§ 8. Sir Sydney Chapman (Chipping Barnet)If he will make a statement about the Government's policy on (a) investment in and (b) fares on London underground. [78823]
§ The Minister for Transport in London (Ms Glenda Jackson)Our policy on investment in London underground is to secure high and stable investment in modernising and maintaining the system. Fares are currently the responsibility of London Transport, but following the establishment of the Greater London Authority, they will become the responsibility of the mayor.
§ Sir Sydney ChapmanHow can the Minister be confident that private investment in the infrastructure of the London underground will be forthcoming, given that the assets created will remain in or return to the public sector? The Transport Sub-Committee has referred to the public-private partnership as a convoluted compromise. Is not the truth of the matter that the PPP will lead to a lack of adequate investment and a continuation of fares rising above the rate of inflation, in contradistinction to the privatised railways whose fares have gone down in real terms since privatisation?
§ Ms JacksonNo. Private sector interest in our proposals for PPP is very strong. As for fare rises, according to the modelling, fares will rise at a rate conforming to the retail prices index plus 1 in 2000-01, and at RPI plus 0 after 2001. That is in marked contrast to the last decade of the last Administration, during which, despite promises to freeze London Transport fares, they rose by 38 per cent. in real terms.
§ Mr. Richard Ottaway (Croydon, South)Is not the real picture very different? Does the Minister agree that the last Government were investing £700 million a year in the underground, while the present Government are investing £500 million? Does she agree that, while this Government's PPP will raise £7 billion over 15 years, 13 the last Government spent that in 10 years? Does she agree that, while the private railways are experiencing rising investment and falling fares, the underground is experiencing falling investment and rising fares, and that, after decades of expansion, no new lines are planned? What on earth has happened to the Labour party's manifesto pledge to improve the London underground?
§ Ms JacksonThe last Administration reduced core investment in the London underground year on year. Their only solution to the problems was to wash their hands of the underground by promoting a privatisation that would have reduced the existing network by at least a third, and which received the big thumbs-down from Londoners. Our proposal for public-private investment has been welcomed, and will provide enough investment to ensure that our underground is of a quality fit not only for the people of London, but for the 21st century.