§ Mr. BrakeTo ask the Secretary of State for the Environment, Transport and the Regions what assessment he has made of the different options for restructuring London Underground put forward by London Transport; and if he will make a statement. [42363]
§ Ms Glenda JacksonLondon Transport presented their evaluation of options for the future of London Underground to the Deputy Prime Minister in September226W 1997. In the following months, there were numerous meetings, with different Departments, at Ministerial and official level, with LT and their advisers at which all the issues were debated. We fully considered London Transport's proposals in reaching our decisions on a Public/Private Partnership.
§ Mr. BrakeTo ask the Secretary of State for the Environment, Transport and the Regions what assessment he has made of who will be liable in the case of a serious infrastructure failure on London Underground after concessions for managing the infrastructure of London Underground have been awarded to private companies; and if he will make a statement. [42365]
§ Ms Glenda JacksonUnder our proposals, the private sector will be responsible for financing, maintaining and modernising the Underground's infrastructure. The contractor, or contractors, will be subject to a tough performance regime with penalties for failure or poor performance. We will be working with London Transport and expert advisers to establish the details of the division of specific risks and liabilities between the public sector operating company and infrastructure contractor(s).
§ Mr. BrakeTo ask the Secretary of State for the Environment, Transport and the Regions what assessment he has made of the potential impact on London Underground fares of a fall in net revenues after concessions for managing the infrastructure of London Underground have been awarded to private companies; and if he will make a statement. [42364]
§ Ms Glenda JacksonThe Government's financial advisers looked at a range of assumptions about passenger revenues. Their analysis showed that the option announced by the Deputy Prime Minister on 20 March 1998,Official Report, columns 1539–56, is robust against a fall in revenues, and that substantial fare increases would therefore not be necessary to pay infrastructure contractors or meet the operating costs of the London Underground operating company. Once the GLA is established, London Underground fares will be a matter for the Mayor.
§ Mr. CohenTo ask the Secretary of State for the Environment, Transport and the Regions what controls there will be on the charges contractors can make to London Underground for use of track, signals and stations under his proposals; what estimate he has made of the likely impact on fares; and if he will make a statement. [42394]
§ Ms Glenda JacksonThe infrastructure contractor, or contractors, will be responsible for financing, maintaining and modernising the Underground's infrastructure, and will be paid by London Underground according to their contract. We will be working with London Transport and expert advisers to establish the details of the contractual payment mechanism, which will be based on paying the contractor according to performance.
There is no reason to expect large increases in fares, which, once the GLA is established, will be a matter for the Mayor.
§ Mr. BrakeTo ask the Secretary of State for the Environment, Transport and the Regions what assessment he has made of the transitional costs and ongoing costs of(a) keeping London Underground in the public sector, 227W (b) privatising the whole of London Underground as a single unit and (c) creating a number of concessions to take over the London Underground infrastructure; and if he will make a statement. [42362]
§ Ms Glenda JacksonThe Government's financial advisers made assessments of the transitional and ongoing costs of keeping London Underground in the public sector, and of awarding a contract, or contracts to finance, maintain and modernise the Underground's infrastructure. These assessments, along with other important factors such as safety, were fully considered by the Government in reaching our decision on a Public/Private partnership for London Underground. The financial comparisons showed that the Government's preferred option is likely to represent better value for money than retaining London Underground in its current form. No assessment was made of privatising the Underground, which was ruled out in the Manifesto.