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Tories call for NAO inquiry into PPP following Metronet collapse

Shadow transport secretary Theresa Villiers has asked for a full inquiry into the Tube Public Private Partnership (PPP) system, following the collapse of tube upgrade company Metronet earlier this week.
In an open letter to Comptroller and Auditor General of the National Audit Office (NAO), Sir John Bourne Villiers said, that 'this PPP has delivered neither value for money nor a high quality of service for the capital's travelling public.'The NAO had previously examined the PPP system in 2004 - a year into the system where London Underground was carved-up into three companies, each there to upgrade specific lines.Metronet won two of the three contracts, to upgrade all but the Jubilee, Northern and Piccadilly lines, which were won by the Tube Lines consortium.In its 2004 report, the NAO concluded that the costs for tube upgrades could rise. 'There is only limited assurance that the price is reasonable, reflecting the complexity of the PPPs and some uncertainty about the eventual price,' it wrote in from 'Are the Public Private Partnerships likely to work successfully?'.'I would therefore urge you to look at again this issue and investigate the operation of the PPP contracts,' said Villiers.'It would seem to me to be important to look at the structure as a whole, rather than just the Metronet side.Although the problems with the other infraco, Tubelines, are not as serious as those with Metronet, my constituents in Chipping Barnet have significant difficulties with the Northern and Piccadilly Lines for which Tubelines have responsibility,' she said.

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