HC Deb 25 November 2002 vol 395 cc62-3W
Mr. Flight

To ask the Chancellor of the Exchequer what his Department's liabilities are in relation to the public-private partnership for London Underground. [81784]

Mr. Jamieson

I have been asked to reply.

I refer the hon Member to the reply given by my right hon. Friend the Minister for Transport to the right hon. and learned Member for Folkestone and Hythe (Mr. Howard) on 18 April 2002, Official Report, column 1107W.

Mr. Flight

To ask the Chancellor of the Exchequer when he expects a deal for the part-privatisation of London Underground to be finalised. [81786]

Mr. Jamieson

I have been asked to reply.

The Government expect that the public private partnership contracts to modernise the London Underground's infrastructure will be concluded shortly.

Mr. Flight

To ask the Chancellor of the Exchequer what discussions his Department has had with the European Commission regarding the legal status of the public-private partnership of London Underground. [81788]

Mr. Jamieson

I have been asked to reply.

In accordance with its EC obligations, on 12 April 2002 the Government notified the proposed PPP arrangements to the European Commission. On 2 October 2002 the European Commission decided that those arrangements do not constitute state aid.

Mr. Flight

To ask the Chancellor of the Exchequer (1) how much has been spent on(a) consultancy and (b) legal fees with regard to the public-private partnership for the modernisation of London underground; [81816]

(2) what the cost has been to his Department in legal fees of the Government's involvement in the public-private partnership scheme to improve London Underground. [81810]

Mr. Jamieson

I have been asked to reply.

I understand from London Transport that their expenditure on external consultants, including legal advice, from 20 March 1998 (the date of the Government's announcement) to 30 September 2002, for work on the PPP and restructuring of London Underground, was £96.3 million. As a result of the delayed implementation of the PPP, London Transport currently estimate that the final amount should be between £103–£105 million, an increase of between £5–£7 million over its December 2001 forecast. Around £1.6 million of this increase arises from the Mayor's second unsuccessful legal challenge in July 2002. The court granted that these costs should be fully recovered from Transport for London.

Legal advice to my Department has generally been provided through our own internal legal advisers. Treasury Solicitors were instructed to act for my Department in connection with the Mayor's two unsuccessful legal challenges at a cost to the Department of around £45,000. Approximately half of this amount was subsequently recovered from Transport for London.