HC Deb 05 May 1998 vol 311 cc317-8W
51. Mr. Randall

To ask the Secretary of State for the Environment, Transport and the Regions how he intends to attract capital to London Underground. [39557]

Ms Glenda Jackson

The Deputy Prime Minister announced the Government's plans for the future of London Underground on 20 March 1998,Official Report, columns 1539–56. We will keep the single public sector operator that passengers want, and award one, two or three contracts to finance, maintain and modernise the Underground's infrastructure. Under this innovative solution, the private sector will provide the capital needed for a massive programme of investment.

Mr. Hammond

To ask the Secretary of State for the Environment, Transport and the Regions what advice he received from (i) London Underground Ltd. and (ii) London Transport regarding the relative merits of the different options for the future of London Underground, prior to announcing his decision to pursue the public-private partnership option. [40813]

Ms Glenda Jackson

The Government asked London Transport (LT) for their views on public-private partnership options and the dialogue with LT was useful in helping the Government formulate their policy—a process which also took account of the views of, for example, the Government's financial advisers on the project and the Health & Safety Commission. London Transport incorporated the views of its subsidiary, London Underground Ltd. in the advice it gave to Government.

London Transport's suggestion was to retain the existing structure of London Underground, but to ensure higher and stable funding through long-term committed Government grant, direct borrowing or the right to review hypothecated from other transport sources. Their second option was a flotation of the existing Underground business, but with tight hands-on regulation and supervision. These options were seriously considered by the Government, but not chosen. The key facts and analysis underlying the Government's policy analysis were set out in a paper deposited in the Library of the House on 20 March 1998, Official Report, column 1539. London Transport is now working very closely with the Government and it is committed to the success of our policy.