London First response to NAO report on Metronet collapseJune 5, 2009
The National Audit Office today published its study on the circumstances surrounding Metronet’s collapse and identifies lessons for the future.
Baroness Jo Valentine, Chief Executive of leading business organisation London First said:
“This report offers valuable insights into Metronet’s collapse and its dramatic consequences for the vital Tube upgrade. That was then – this is now. The Mayor must assure tax and fare payers that he can banish the ghosts of Metronet past. He should allow the independent PPP Arbiter Chris Bolt, to shine a floodlight on the dark Underground recesses of Metronet’s current work programme, under Transport for London management. Mr Bolt’s most recently published research* reveals that without transparency and scrutiny, Metronet may continue to dog the investment case for Tube modernisation.”
The NAO report studies the circumstances surrounding Metronet’s entry into administration and subsequent developments. Metronet was awarded two of the three Public Private Partnership (PPP) contracts to renew and maintain the London Underground tube network in April 2003 and entered administration on 18 July 2007. The Department for Transport is providing Transport for London with financial support to allow operations to be maintained. The NAO study examines the causes of the failure of Metronet and identifies lessons for the future.
Notes to Editors
*PPP Arbiter – Independent Reporter’s Report on Metronet (1 June 2009)
London First is a business membership organisation. Its mission is to make London the best city in the world in which to do business. London First mobilises the experience, expertise and enthusiasm of the private sector to develop practical solutions to the challenges facing London. London First seeks to persuade central and London government to invest in infrastructure.
London First delivers its activities with the support of the capital’s major businesses in key sectors such as finance, professional services, property, ICT, creative industries, hospitality, retail and health. Membership includes further education colleges and all of London’s universities. London First members represent over a quarter of London’s GDP.