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Private cash plan to modernise tube

He told the House of Commons though, that this was not privatisation of the system and its assets would remain in the public sector.

Mr Prescott also announced that the tube would receive an extra £365m over the next two years for core investment.

He added: "The freehold ownership of assets will remain in the public sector. The private sector contractor or contractors will be free to borrow sums outside the constraints of the public sector pay round."

Mr Prescott said one, two or three private sector contracts would be awarded to maintain and modernise the tube's infrastructure and rolling stock.

Stiff penalties

Contractors would be responsible for refurbishing stations, replacing track, upgrading signalling and refurbishing or replacing trains, as well as regular maintenance.

Their obligations would include an agreed performance regime with incentives and stiff penalties.

London Underground would still be responsible for operating services, including ticketing, fares, service levels and the operation of the signalling system and safety.

'Decades of neglect'

Mr Prescott said that if the best value could be obtained by having a single contractor, that is what would be done.

He added: "The plans I am announcing will deliver an imaginative, long-term solution to the problems caused by decades of neglect and under-investment."

He said that what he was announcing was a 15-year, £7bn programme to provide London with a world class underground system.

"It is not privatisation, nor nationalisation, but a radical new 'third way' to generate investment while retaining a publicly-owned, publicly accountable network," said Mr Prescott.

He said that the £365m would enable London Underground to do additional track work on the Victoria and Northern lines, while old Jubilee Line trains will be converted for the Piccadilly Line. In addition, 15 more escalators will be replaced and more than 30 stations refurbished.

But the plans were swiftly branded an "unsatisfactory and inadequate compromise" by the opposition.

Shadow Transport Secretary Sir Norman Fowler warned the public-private partnership scheme amounted to "a botched-up privatisation" of the capital's tube network.

He told the Commons that it was a recipe for "in-built conflict," which will not serve the interests of the taxpayer, London Underground or the travelling public.

Relevant Stories

Tube misery gets worse (01 Mar 98 | UK)
Underground sale 'nearer' (16 Jan 98 | oldBusiness)
Safety fears linger, decade after Kings Cross fire (15 Nov 97 | UK)

Internet Links

London Underground Transit Guide
Jubilee Line Extension
Department of Transport, Environment and the Regions

The BBC is not responsible for the content of external internet sites.

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