Tube talks at an 'end' - Kiley

Bob Kiley is asking Tony Blair for control of the Tube

The latest talks on the future of the London Underground have failed to broker a deal, bringing closer the possibility that the issue may be have to be resolved in court.

Speaking after a meeting with Transport Secretary Stephen Byers, London Transport Commissioner Bob Kiley said it looked like "the end of the road" for the talks.

I do not think that the government will take a gamble on the court case going ahead

Ken Livingstone

If the government presses ahead with its plans to bring in private companies to take on the refurbishment of the Tube it could face going to judicial review on 23 July, London Mayor Ken Livingstone has warned.

Explaining the impasse after emerging from a 40-minute meeting with Mr Byers, Mr Kiley said: "I think there is no way forward right now with the bidders.

Views 'incompatible'

"One bidding group tried hard to see its way through but there is fundamental incompatibility between the two positions - ours and theirs."

London Underground will run the Tube and retain responsibility for safety

Stephen Byers

Seeking to take some of the heat out of the clash with the government Mr Kiley said he would not comment further until the prime minister had replied to his letter in which he said he could not make the government's plans for the Underground work without compromising passenger safety.

The government insists that the Health and Safety Executive will have a "double" veto over proposals to modernise the Tube.

Tube will not be 'privatised'

Mr Byers has said the current proposals to involve two private sector companies in re-building the ailing network would be ditched unless the HSE accepted the safety case for London Underground's new structure.

Mr Byers added that New Labour "will not privatise" the Tube.

He said: "Under my proposals, London Underground will run the Tube and retain responsibility for safety."

Ken Livingstone (left) celebrates his inauguration

Speaking ahead of the talks, Mr Livingstone again pressed the government to hand the control of the Tube over to Mr Kiley saying this was the only way ministers could avoid going to court.

In a speech marking his inauguration and first year in office, Mr Livingstone told an audience of business people: "Bob Kiley has written to the prime minister saying that he cannot find a way to make the substantial proposals safe.

A 'rapid' conclusion

"They need to transfer the Underground to him so that he can provide improvements in three years. The government's plan says improvements in 10 years."

The mayor continued: "Bob Kiley has given it his best shot with the bidders that were prepared to negotiate seriously. We still could not find a way to ensure unified management control. This is all coming to a conclusion very rapidly."

But he added: "I do not think that the government will take a gamble on the court case going ahead."