§ Lord Bradshawasked Her Majesty's Government:
Given the past experience of railways in Britain, what is their estimate of the number of people required for, and the cost of, the operation of the performance regime proposed for London Underground. [HL1462]
§ Lord Falconer of ThorotonIt is for London Underground to determine the appropriate number of staff to operate the performance regime for the Tube modernisation contracts and to set the relevant budgets.
§ Lord Bradshawasked Her Majesty's Government:
Whether there will have to be a real performance improvement on London Underground before the three infracos make any money from the performance regimes being considered for the system; and [HL1463]
Whether profits of the three infracos proposed for London Underground will be dependent upon improved performance on the Underground. [HL1464]
§ Lord Falconer of ThorotonThe performance regime for the Government's Tube modernisation plans has been carefully designed to ensure that the private sector infrastructure companies are incentivised to deliver significant improvements in performance. Bidders for the Tube modernisation contracts have responded to this by targeting real and sustained improvements, with plans to invest at least £13 billion in the Tube over the first 15 years. If the private sector 65WA infrastructure companies fail to meet the levels of performance they are targeting, this will have a direct impact on the payments they receive from London Underground. Shareholders will receive the financial return they expect only if we receive the performance improvements we expect.