10 June 2005
Slow spending by both Network Rail and London Underground's private infrastructure renewal partners has come under fire this week.
Chris Bolt, chair of the Office of Rail Regulation, said Network Rail's spending was £1bn less than budgeted, equivalent to 15% of the total. In a letter to the public company on June 7, he wrote: 'There is a need to understand how much of this is due to deferral of work, with possible implications for sustainability of the network, or improved efficiency and/or reduction in the scope of the work necessary.'
Bolt warned that Network Rail 'will not be allowed to benefit from underspend due to underperformance', and that he might adjust its revenue next time track access charges were reviewed, 'to reflect any de-scoping or deferral associated with underperformance'.
But Network Rail chief executive John Armitt defended the underspend. 'We are not prepared to spend money on projects that simply aren't ready. We make no apology for deferring spending to later years as we are determined to ensure tight budgeting and a clear understanding of what needs to be delivered.'
Meanwhile, the London Assembly's transport committee has voiced frustration over delays in the London Underground improvement programme by public-private partnership contractors Metronet and Tube Lines. In a June 7 report, it said the system was in a better condition than two years ago, when the partnership started, but this was 'no cause for satisfaction as there was a very low starting point'.
It said that Metronet's station refurbishment programme was running four months late.
PFjun2005
