Livingstone hires New York tube chief in £2m pay deal

12 Oct 00
London Mayor Ken Livingstone has broken public sector pay barriers by offering up to £2m over four years to lure 'the best in the world' to London's top transport job.

13 October 2000

Former CIA man Robert Kiley, credited with turning around the New York City underground system, is the new commissioner of transport for London and takes up his post next month. Kiley, whose appointment is being seen as an international coup for Livingstone, could also prove a powerful political ally in the mayoral campaign to defeat the government's proposed public-private partnership for the network.

As the chief executive of New York's Metropolitan Transport Authority for eight years, Kiley used Livingstone's favoured bond financing scheme to turn around the city's subway network. He also restructured the MTA's management and is credited with rebuilding the city's transport infrastructure and reorganising its buses and commuter rail network.

His appointment will put yet more pressure on Deputy Prime Minister John Prescott to abandon his beleaguered PPP tube plans, with Livingstone likely to wheel out Kiley as a force capable of implementing alternative modernisation schemes.

Livingstone appears to have long-term plans for the new commissioner, who is on a performance-related pay deal over four years. He could potentially earn a total of £2m, setting a precedent for other high-level public sector appointments.

The mayor described Kiley as one of the 'world's greatest experts' in transport and guaranteed that 'Londoners will consider this cheap at the price' if he achieves anything near his success in New York.

The new commissioner will take over responsibility for London's buses and taxi networks and will resume control of the Tube once the PPP has been agreed. He is currently chief executive of regeneration agency the New York City Partnership.

l Railtrack has admitted that train delays rose by 10% from April to December this year but blamed wet weather and more leaves on the track for failing to meet its performance targets for the second year running.

It now faces a penalty of around £40m from the rail regulator, which set a target for a 7.8% improvement.

Railtrack has warned passengers to expect more delays over the winter but is likely to escape any major fines next year with the rail regulator considering setting tougher rules to regulate penalties paid to train operators.

PFoct2000

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