HL Deb 25 February 2002 vol 631 c198WA
Viscount Astor

asked Her Majesty's Government:

What they regard as a reasonable rate of return for the private sector in the public/private contracts for London Underground. [HL2819]

Lord Falconer of Thoroton

The best way to ensure that the rate of return achieved under a contract is a reasonable one is for that contract to be let on a fair and competitive basis. London Underground has conducted such a competition for the Tube modernisation contracts. It has also carried out a thorough evaluation of bids to ensure that they represent value for money, not just on the rate of return, but as a whole.

Viscount Astor

asked Her Majesty's Government:

What is the timetable for consultation with the Health and Safety Executive on the public/private partnership proposals for London Underground. [HL2820]

Lord Falconer of Thoroton

The Health and Safety Executive has been involved in consideration of London Underground safety arrangements throughout the development of the plans for a public/ private partnership. HSE has accepted a series of revisions to London Underground statutory safety case:

  • September 1999—Version 2.0 allowed London Underground to restructure its internal organisation into three infrastructure divisions and an operating division.
  • April 2000—Version 2.5 allowed London Underground to establish the infrastructure companies as separate but wholly owned subsidiaries operating in accordance with the PPP contracts.
  • December 2001—Version 3.0, covering the same structure as Version 2.5, was accepted in accordance with the new Railway (Safety Case) Regulations 2000. This safety case was implemented by London Underground on 4 February and is currently in force.

HSE is currently considering a further revision to London Underground's safety case (Version 3.1). This was submitted to HSE on 22 December 2001 and deals with the arrangements for the involvement of the private sector in the modernisation of the Underground. The timing for any acceptance decision is a matter for HSE. The PPP proposals will not proceed unless HSE accepts the revised safety case.