HC Deb 18 July 2001 vol 372 cc195-200W
Harry Cohen

To ask the Secretary of State for Transport, Local Government and the Regions what assessment of the relative priority in respect of the London underground he has made of(a) refurbishing stations to incorporate shopping malls and (b) maintenance of rolling stock, track and signals; to what extent Transport for London's chosen priority in this regard will apply and how the infrastructure companies will influence such decisions; and if he will make a statement. [4722]

Mr. Jamieson

The plans for the modernisation of the underground will deliver around £13 billion to improve the underground's infrastructure over the next 15 years. The relative priorities for rolling stock, track, signals and stations have been set by the public sector, not the infrastructure companies. The requirements have been designed to improve the capacity, reliability and quality of the underground as quickly and efficiently as possible, while maintaining high safety standards.

Within this balanced programme, expenditure on stations will account for less than a quarter of the total investment over the next 15 years. The priority at stations will not be to incorporate shopping malls, but to address those other issues passengers consider important: making sure the lifts and escalators work; installing CCTV to improve passenger security; tackling congestion at the busiest stations; providing step-free access; and improving the quality and cleanliness of stations.

Harry Cohen

To ask the Secretary of State for Transport, Local Government and the Regions if he will list penalty clauses and similar liability arrangements in

the London Underground contract with the infrastructure companies; by whom they were drawn up; if they and performance relating to them will be published; and if he will make a statement. [4723]

Mr. Jamieson

Contracts for the modernisation of the tube have been developed by London Underground Limited. I understand that London Underground has set the priorities to ensure the private companies provide improved infrastructure so that London Underground can operate a safe and reliable service for passengers. Infrastructure companies will be rewarded for improving the capacity, reliability and quality of the underground infrastructure, and penalised for poor performance. Penalties in the contract will reflect the full impact of any delay or disruption to passengers and not be limited by a cap. I understand that London Underground intends to publish the contracts once negotiations have been completed and will make available information on performance

Harry Cohen

To ask the Secretary of State for Transport, Local Government and the Regions how he expects new investment in the London Underground to be spent. [4721]

Mr. Jamieson

The plans for the modernisation of the tube provide a comprehensive package to renew the whole of the underground's infrastructure and are designed to ensure that the money is spent efficiently, with improvements specified by the public sector delivered on time and on budget. Around £13 billion of investment will be made over the next 15 years, with some £8.7 billion spent on enhancements and £4.3 billion on maintenance—a higher level of sustained investment than ever before.

As a result of this investment, services will be faster and more frequent with, for example, a 20 per cent. increase in capacity on the Victoria line. Fewer breakdowns and delays will result in a more reliable service. Every train on the underground will be replaced or refurbished over the lifetime of the contracts, and every station will be upgraded in the first seven and a half years.

Service disruptions due to failures in signals/points
1999–45 1995–96 1996–97 1997–98 1998–99 1999–2000 2000–01
Non LT 21 26 20 41 26 26 16
Bakerloo 343 263 264 292 249 355 248
Central 518 542 644 880 308 335 490
District 334 385 303 269 278 394 525
Jubilee and East LL 140 79 79 110 197 338 444
Metropolitan and Circle (c and h) 180 212 129 131 125 238 407
Metropolitan and Circle (main) 247 256 209 266 194 290 522
Northern 245 324 298 323 216 317 358
Picadilly 222 287 261 241 213 202 326
Victoria 99 120 115 166 149 131 186
Total 2,349 2,494 2,322 2,719 1,955 2,626 3,522

Service disruptions due to failures in other track
1994–95 1995–96 1996–97 1997–98 1998–99 1999–2000 2000–01
Non LT 6 38 26 10 14 12 5
Bakerloo 53 99 193 201 176 168 171
Central 100 147 203 92 65 50 62
District 74 101 74 51 69 83 179
Jubilee and East LL 54 74 45 38 77 146 136
Metropolitan and Circle (c and h) 61 78 75 61 57 62 98
Metropolitan and Circle (main) 88 118 105 73 83 82 136
Northern 95 123 141 165 109 105 208
Picadilly 86 125 92 110 109 135 165
Victoria 42 56 54 80 66 66 58
Total 659 959 1,008 881 825 909 1,218

Harry Cohen

To ask the Secretary of State for Transport, Local Government and the Regions if he will publish the financial assessment of the methods of funding future capital investment in the London Underground over a similar period favoured by(a) Her Majesty's Government and (b) Transport for London. [4726]

Mr. Jamieson

We have made clear that our plans for the London Underground will go ahead only if they represent value for money. We will make this judgment guided by the results of the robust public sector comparator that London Underground has constructed. This explicitly allows for the possibility of public sector bond financing, in line with the scheme suggested by Transport for London.

A note outlining the methodology used to develop the comparator was placed in the Libraries of the House in March 2000. The results of the comparator will also be published once negotiations with bidders have been completed. To release the comparator any earlier would risk undermining London Underground's negotiating position and jeopardise its ability to achieve value for money for the taxpayer.

Harry Cohen

To ask the Secretary of State for Transport, Local Government and the Regions what are the principal reasons for the cost overrun for the extension of

Dr. Murrison

To ask the Secretary of State for Transport, Local Government and the Regions what the annual number of breakdowns on each line of London Underground involving signal, points and track failures has been since 1997; and if he will make a statement. [4611]

Mr. Jamieson

This is an operational issue for London Underground which has provided the following information:

the Jubilee Line from Green Park to Stratford; what his estimate of the total of that cost overrun is; what percentage of the original estimate that represents; what is the estimated cost; which parties overran in each case; what circumstances were responsible for the cost overrun; how much was paid to consultants in relation to the line extension; what assessment has been made of how inaccurate cost assessments contributed to cost overruns; what contractual mistakes were made and extra cost incurred from them; and if he will make a statement. [4728]

Mr. Jamieson

The Jubilee Line Extension (JLE) was a vast and complex undertaking, managed by London Transport/London Underground Limited. It was one of the largest engineering projects in this country for many years. This Government inherited a project already under way, and poorly planned. Various studies of the JLE have been carried out and others are still under way. The current forecast total cost is £3.5 billion, including commissioning costs. Actual final cost will not be known until all contracts and claims are settled. When it was given the go-ahead, the JLE was expected to cost £2.1 billion (at 1993 cash prices, excluding commissioning costs).

The causes of JLE cost overruns included the omission from the original figure of estimates for commissioning the line and turning it into a working railway; amendments to the programme and opening strategy which had associated acceleration and prolongation costs; changes to specifications such as the addition of CCTV, not originally specified but later required in line with improvements elsewhere on the Tube; 'descoping' of systems such as signalling and communications; and other factors entirely outside the control of the project or its contractors, such as the new Austrian tunnelling method collapse on the Heathrow Express Project which caused all NATM JLE tunnelling to be suspended causing delays of around six months. Industrial action and vandalism contributed to increased costs.

I will write to my hon. Friend about expenditure on consultants.

Various studies of the JLE have been undertaken. Some have already produced outcomes; others are still under way. The end of commission report by the Secretary of State's Agent, Ove Arup, made recommendations, and following the review of this report by Peter Gershon of the Office of Government Commerce, specific OGC recommendations on the whole process of major project approval and management are being implemented.

It is clear that project management and contractual arrangements contributed significantly to JLE overruns: this indicates the need for better measures for the future. Improved arrangements have been included in the contracts offered to bidders who will be London Underground's partners in the programme for the modernisation of the Tube. In particular, the private contractors will bear responsibility for projects that come in over time and beyond budget.

Harry Cohen

To ask the Secretary of State for Transport, Local Government and the Regions how many alternatives for the future funding of the London Underground were put to(a) him and (b) Transport for London; and if he will make a statement. [4727]

Mr. Jamieson

The Government ruled out privatisation of the Underground, but carefully considered all other options for modernising the Underground, including the use of bond financing, a public trust, joint ventures, vertically integrated business and the status quo. We firmly believe that our plans are the best way to achieve a 21st Century Tube, and to ensure safety and value for money. The Underground will remain publicly owned and run, and the massive programme of investment will be carried out in partnership with the private sector as quickly and efficiently as possible.

Transport for London submitted to the Mayor its outline of a programme for the rehabilitation and management of the Underground in December 2000 and a Proposed Management Plan for the London Underground in April 2001. It is a matter for Transport for London whether they considered any alternatives to the ideas put forward in those reports.

Harry Cohen

To ask the Secretary of State for Transport, Local Government and the Regions how much(a) public capital investment and (b) private sector investment is proposed to be made in each of the next 15 years into the London Underground; what will be the return on capital for the private sector investors; who will pay it; and if he will make a statement. [4725]

Mr. Jamieson

The plans for the modernisation of the Underground will deliver around £13 billion of investment to improve the underground's infrastructure over the next 15 years. It is estimated that some 20 per cent. of finance for these plans will be provided by the private sector, with the remainder coming from London Underground fares and Government grant.

The rate of the return for the private sector will be determined by the outcome of London Underground's negotiations with bidders. The agreed rate of return will be achieved only if the private companies meet their obligations to provide track, trains, signals and stations with increased capacity, better reliability and higher quality.