PPP (Supplementary) [15]

Session date: 
July 18, 2001
Question By: 
Lynne Featherstone
Liberal Democrats
Asked Of: 
The Mayor


So that is all smoke and mirrors, and the assertion that bonds could not be backed by the fare stream is ridiculous. That leads me on to another area - safety, and the Bob Kiley issue. Given what has happened with the recently admitted dereliction by London Underground in the case which is awaiting sentence, if corporate manslaughter is brought in as a charge against companies, and should - God forbid - the PPP be imposed and an accident happen, have you had any advice from your legal department on whether, under company law, Bob Kiley or you yourself might be held responsible?

Supplementary To: 


Answer for PPP (Supplementary) [15]

Answer for PPP (Supplementary) [15]

Answered By: 
The Mayor

The latter point is not an issue I have thought about at all. It is something on which we will have to take legal advice if the PPP is upheld in court next week. I suspect that it would be almost impossible to get anyone to serve on the TfL board if they were going to be liable for any accidents and loss of life caused by the PPP.

It is not just accidents and loss of life. At the moment there is an adjudication by a judge over the case brought by Canary Wharf against London Underground for failure to comply with service delivery of the Jubilee line trains. I think we are talking in that case in terms of hundreds of millions of pounds compensation to Canary Wharf. When Canary Wharf gave the Government £500 million towards the construction, there was a promise of 33 trains an hour; at the moment, London Underground, under its imaginative leadership, is providing 21 or 20 an hour, and this is a real problem in the development of Canary Wharf.

As for the costs of all this, the Government talk about it being a £13 billion programme, and we are talking about £2.6 billion being raised by the private sector, with the rest coming from the taxpayer. Of that £2.6 billion, almost half is guaranteed by a loan from the European Bank. The actual money that the infracos will raise from the markets is probably not much more than 12% or 15% of the total sum invested. You cannot lose on this deal.