§ The Secretary of State for Transport (Mr. Alistair Darling)This statement is in response to Early Day Motion 285 which expressed concerns about the contingent liability in respect of the London Underground PPP notified by my Minute of 4 December.
The contingent liability would crystallise only in the event that the Mayor of London proceeds with his legal challenge to the plans, and in the event that any successful challenge has a material adverse effect on an Infrastructure Company. Significant risk is transferred 49WS to the private sector under the London Underground PPP. Should the contingent liability materialise, the amounts payable will in large part be attributable to 50WS paying for the investment that has already been undertaken under the PPP contracts and has gone into the Tube.