HC Deb 04 March 2002 vol 381 cc84-9W
Tom Brake

To ask the Secretary of State for Transport, Local Government and the Regions what powers the Health and Safety Executive has in relation to withdrawing the safety cases for the London Underground PPP under the(a) Greater London Authority Act 1999, (b) Transport Act 2000 and (c) contracts between London Underground (and Transport for London when transferred) and the Infracos; and what implications this has for the ability of London Underground (and Transport for London when transferred) to (i) change or (ii) withdraw the Infraco contracts. [38973]

Mr. Jamieson

None. The relevant powers of the Health and Safety Executive are in the Railways (Safety Case) Regulations 2000, on which guidance is published by and available from HSE. HSE assesses and considers safety cases for acceptance. It can require London Underground to revise its safety case and submit the revision for assessment.

Tom Brake

To ask the Secretary of State for Transport, Local Government and the Regions what powers he has regarding the placing of the Infracos on the London Underground into administration under(a) the Greater London Authority Act 1999, (b) the Transport Act 2000 and (c) the contracts with the Infracos for the London Underground PPP. [38980]

Mr. Jamieson

I refer the hon. Member to Section 221 of the Greater London Authority Act 1999.

Tom Brake

To ask the Secretary of State for Transport, Local Government and the Regions (1) what the(a) nature and (b) length of leases of (i) real estate, (ii) property and (iii) premises on the London Underground which (A) have taken place and (B) are due to take place under the London Underground PPP; [38986]

(2) what his Department's definition is of (a) premises, (b) real estate and (c) property on the London Underground, listing in each case the type and number of assets. [38978]

Mr. Jamieson

The establishment in April 2000 of the infrastructure companies, which are subsidiaries of London Underground Limited, enabled shadow running of the proposed arrangements which would operate under the PPP. The infrastructure companies have the benefit of such leases of infrastructure as are appropriate and necessary in order for the infrastructure companies to perform their contracts with London Underground Limited. Ensuring the necessary arrangements are in place is a matter for London Underground Limited and the infrastructure companies.

The leases give the infrastructure companies sufficient interest in the infrastructure to enable them to carry out their obligations under the contracts. The freehold remains with London Underground Limited. London Underground Limited has the benefit of a sub-lease, reflecting its role as operator of the network.

If London Underground Limited enters into the proposed PPP arrangements, the infrastructure companies' interest in the leases will remain with those companies.

Tom Brake

To ask the Secretary of State for Transport, Local Government and the Regions what changes there have been to the final contracts with the Infracos on the London Underground PPP, regarding(a) the level of financial allowance for safety critical work and (b) contractual safety cases. [38979]

Mr. Jamieson

London Underground is responsible for the development of PPP contracts for the modernisation of the underground's infrastructure. I understand that the contracts require the infrastructure companies to comply with a contractual safety case, and to finance up to £50 million of safety changes and qualifying law changes in any contract year. That compares to the previously proposed level of £200 million per seven and a half year review period (around £26 million per year).

Tom Brake

To ask the Secretary of State for Transport, Local Government and the Regions when assessments made by(a) his Department, (b) the Treasury, (c) Ernst and Young, (d) London Underground Limited, (e) the Mayor of London and Transport for London and (f) the Health and Safety Executive of (i) value for money and (ii) safety of the contracts tendered by bidders Metronet and Tube Lines wishing to enter into a public-private partnership with London Underground Limited were (1) concluded, (2) published and (3) made available for further consultation. [38968]

Mr. Jamieson

London Underground is responsible for implementation of the proposals for a public private partnership to modernise its infrastructure. It published on 7 February the assessment report considered by the London Transport Board, which considers, among other things, both value for money and safety. The report was sent on the same day to the Mayor and Transport for London, along with a wide range of other information, as part of the statutory duty of consultation and co-operation.

The Secretary of State commissioned Ernst and Young to carry out an independent review of London Underground's value for money analysis for him. This was completed before the LT Board meeting on 7 February and published on that day.

The Health and Safety Executive is responsible for regulation of London Underground in relation to safety, including acceptance of London Underground's statutory safety case.

Assessments made by the Mayor and Transport for London are a matter for them.

Tom Brake

To ask the Secretary of State for Transport, Local Government and the Regions if he will list those assets transferred to the Shadow Infracos on the London Underground; and the date on which the transfers took place. [38985]

Mr. Jamieson

Assets were transferred by statutory transfer scheme from London Underground Limited to the infrastructure companies BVC Limited, SSL Limited, and JNP Limited, which are subsidiaries of London Underground Limited, in April 2000. The establishment of the infrastructure companies and subsequent transfers took place in order to enable shadow running of the proposed arrangements which would operate under the PPP. The transfer schemes transferred such property, rights and liabilities as were appropriate and necessary in order for the infrastructure companies to perform their contracts with London Underground Limited.

Tom Brake

To ask the Secretary of State for Transport, Local Government and the Regions (1) what level of performance under the performance measurement code is required by the contracts for the London Underground PPP with Infracos for(a) each Infraco and (b) each line; what penalties will be imposed upon Infracos for failure to meet these performance targets; and if he will place in the Library copies of related documentation prepared (i) for and (ii) by his Department; [38989]

(2) what the performance measurement code is for the London Underground Infracos under the PPP; if he will place copies of related documentation prepared (a) for and (b) by his Department in the Library; and if he will make a statement. [38990]

Mr. Jamieson

London Underground is responsible for the PPP contracts for the modernisation of the Underground's infrastructure. I understand that the Performance Measurement Code sets out how the performance of each of the three infrastructure companies will be monitored and measured. It does not specify the level of performance required or the bonuses and penalties to be imposed for better or worse levels of performance, which are set out in schedules to the PPP service contracts. I understand that London Underground intends to make the contractual documentation publicly available following completion of the competitions.

Tom Brake

To ask the Secretary of State for Transport, Local Government and the Regions if he will place in the Library the contracts tendered by bidders Metronet and Tube Lines wishing to enter into a public private partnership with London Underground Ltd. [38967]

Mr. Jamieson

London Underground is responsible for the development of the PPP contracts for the modernisation of the Underground's infrastructure. I understand that London Underground intends to make the contractual documentation publicly available following completion of the competitions.

Tom Brake

To ask the Secretary of State for Transport, Local Government and the Regions what changes there have been in the last six months to the final contracts with the Infracos for the London Underground PPP concerning with whom the responsibility for cost overrun will lie; if he will state with whom the responsibility for cost overrun will lie under the contracts with the Infracos for the London Underground PPP; and if he will make a statement. [38981]

Mr. Jamieson

The PPP plans will require three private sector infrastructure companies to carry out work to modernise and maintain the infrastructure of the underground. These infrastructure companies will be responsible for ensuring that they meet their contractual obligations on time and on budget, and they will bear the risk of any cost overruns that result from their own inefficient or uneconomic behaviour. This principle has not been changed in the last six months.

Tom Brake

To ask the Secretary of State for Transport, Local Government and the Regions which organisations and individuals must be consulted regarding the contracts tendered by bidders wishing to enter into a public-private partnership with London Underground Ltd.; and what the length of time required for consultation to take place is as defined in(a) the Greater London Authority Act 1999, (b) the Transport Act 2000 and (c) subsequent decisions made by (i) his Department and (ii) London Transport. [38964]

Mr. Jamieson

Section 298 of the GLA Act imposes a duty on the Mayor, London Regional Transport and Transport for London to consult and co-operate with each other for the purpose of, among other things, facilitating the securing and carrying into effect of PPP agreements for London Underground. The Act does not specify the length of time required for consultation. I understand that London Regional Transport considers that the current consultation time scale is realistic, reasonable and in compliance with its statutory obligations.

Tom Brake

To ask the Secretary of State for Transport, Local Government and the Regions if he will list the conditions precedent, as referred to at http://www.railways.dtlr.gov.uk/lunderground/factsheets/safety/inde x.htm and as published by his Department on 11 February, that must be satisfied by London Transport before contracts are signed on the London Underground PPP; what timetable these must be satisfied by; and whether his Department must also accept these conditions precedent before final signing of the contracts. [38975]

Mr. Jamieson

The London Transport Board is expected to decide in March whether to enter into the proposed PPP contracts to modernise London Underground's infrastructure. If they decide to proceed, London Underground Ltd. will sign agreed contract terms with the bidders. They will sign on the basis that, before the agreements can come into effect, a number of conditions ("conditions precedent") must be fulfilled. These may relate to issues such as financing and regulatory consents, as well as acceptance of the safety case. The details of the conditions precedent themselves, like other contract terms, are a matter for London Underground Ltd. and the bidders.

Tom Brake

To ask the Secretary of State for Transport, Local Government and the Regions how many and what type of specific improvements are expected under the contracts of the first 7.5 years of the London Underground PPP in terms of(a) track improvement, (b) signals, (c) trains and (d) other infrastructure (i) in total, (ii) for each infraco and (iii) for each line. [38984]

Mr. Jamieson

London Transport's plans for modernisation of the tube are designed to deliver a comprehensive upgrade of the whole network as quickly and efficiently as possible. London Transport is currently consulting the Mayor and Transport for London on the plans following its announcement on 7 February that it is minded to proceed. I understand that London Underground intends to make the contractual documentation publicly available following completion of the competitions.

Tom Brake

To ask the Secretary of State for Transport, Local Government and the Regions what definition of privatisation(a) is used by his Department as standard and (b) has been referred to in documentation published by his Department relating to the PPP of London Underground since 7 June 2001; and if he will make a statement. [38977]

Mr. Jamieson

I refer the hon. Member to the statement by my right hon. Friend the Secretary of State for Transport, Local Government and the Regions on 7 February 2002Official Report, columns 1126–47.

Harry Cohen

To ask the Secretary of State for Transport, Local Government and the Regions if he will list changes to the Gateway process for major Government construction projects arising from consideration of Jubilee line extension project reports; whether these will apply to construction projects undertaken by private sector infrastructure companies involved in the public-private partnership for the London Underground; and if he will make a statement. [39001]

Mr. Jamieson

The Deputy Prime Minister asked Peter Gershon of the Office of Government Commerce to consider the July 2000 Ove Amp "end of commission" Jubilee line extension report in the light of his own report on best practice for central Government procurement. Mr. Gershon concluded that the report reinforced his views that large, high risk projects should be subject to a Gateway process to test viability, approve procurement methods, etc. Following a number of successful pilot exercises, the Gateway technique was formally extended to all large, high risk Government procurement projects.

Under the PPP plans for the modernisation of London Underground three private sector companies will be contracted to carry out work to modernise and maintain the underground's infrastructure. These companies will be responsible for the project management of the work. I understand that each intends to follow a form of Gateway procedure.

Harry Cohen

To ask the Secretary of State for Transport, Local Government and the Regions when he expects to publish the result of the study by Westminster University commissioned by his Department and Transport for London into the economic impact of the Jubilee Line Extension project; and if he will make a statement. [39000]

Mr. Jamieson

The Jubilee line extension impact study report is expected to be published jointly by Transport for London and the Department for Transport, Local Government and the Regions in the spring of next year.

Harry Cohen

To ask the Secretary of State for Transport, Local Government and the Regions when he expects to publish his Department's review of its oversight of the Jubilee line extension project; and if he will make a statement. [38999]

Mr. Jamieson

Officials have been studying the Department's oversight of the way in which the Jubilee line extension project was carried out, with a view to providing advice to Ministers on lessons learned for the Government's role. This work is continuing and its conclusions will be submitted to Ministers. The Secretary of State's agent, Ove Amp, produced an end of commission report on the JLE project. Copies are available in the Libraries of the House.