Metronet (Supplementary) [14]

Session date: 
December 6, 2006
Question By: 
Murad Qureshi
Organisation: 
Labour Group
Asked Of: 
Peter Hendy (Commissioner, Transport for London)

Question

I can well understand why you are not able to give a one word answer to Darren's [Johnson] question, but would you agree that Metronet has bitten off more than they can chew with two PPP contracts, and that the structure of the company is such that it is almost like a construction firm cartel where they get first option on these works and it does not really give an incentive for them to keep their costs down?

Supplementary To: 

Answer

Answer for Metronet (Supplementary) [14]

Answer for Metronet (Supplementary) [14]

Answered By: 
Peter Hendy (Commissioner, Transport for London)

In respect of the first question, these claim to be world beating engineering and utility companies, so it is inconceivable that Atkins and Balfour Beatty - who happen to be listed on the London Stock Exchange - could be alleged to have bitten off more than they can chew. They might not be devoting sufficient management time and attention to fixing what it is that they said they would do, and volunteered to, and they got a very comfortable deal from doing so, and indeed took a considerable amount of money out of the company virtually as soon as the deal was signed.