08 February 2002
Despite a failed legal challenge last July, Ken Livingstone's office this week indicated that the mayor was willing to return to the High Court in a last-ditch effort to stop the government proceeding with its controversial public-private partnership.
Transport Secretary Stephen Byers was expected to give the go-ahead to the PPP on February 7, after Public Finance went to press.
Officials are thought to be considering challenging the government on the long-standing issue of safety, claiming the contracts as they stand may not allow Transport for London to carry out its safety obligations once the PPP is up and running.
Livingstone said if the PPP were imposed, his lawyers would consider whether or not there were 'any grounds for further legal action to uphold London's interest in a safe and efficient Tube system'.
He will also try to convince ministers of his arguments in a month-long consultation with the government following the Byers announcement.
It is clear that the PPP has little support outside the Cabinet and the Treasury. In a report published on February 5, the transport committee, two-thirds of whom are Labour MPs, savaged the government's plans and called on ministers to come up with a different funding solution.
'It was difficult for us to find anything good in this particular deal,' said Gywneth Dunwoody, the committee's chair.
Dunwoody was also scathing of the Treasury, lambasting it for failing to produce any ministers to give evidence to the committee.
Louise Ellman, who also sits on the committee, said the report had the unanimous backing of members and that the PPP would 'not deliver value for money'.
Chris Grayling, a Conservative member, said there would be no improvements for passengers.
The MPs were also concerned that the costs of contracts would rise massively after the first seven-and-a-half years, when they will be renegotiated.
Despite the mauling from MPs, the private sector consortiums were preparing to begin their work. June 1 is seen as a likely starting date for the PPP to begin if any proposed legal challenges fail.
PFfeb2002
