Boris and TfL prepare for legal action in TubeLines debacle

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By LiseS | Friday, April 16, 2010, 12:19

We reported last month that TfL and Mayor Boris Johnson may seek judicial review over the PPP arbiter Chris Bolt's decision that London Underground must find £46 million to plug the gap in Tube Lines' budget for upgrades to the Northern, Piccadilly and Jubilee Lines. Mayor Johnson yesterday confirmed that he would support legal action if the arbiter did not change his decision.

“Simply put," said Johnson, "we are being asked to write a blank cheque in order to

prop up Tube Lines and to guarantee massive payments totalling hundreds

of millions to its shareholders. This approach risks throwing good

money after bad."

TfL have already stated that they will seek a judicial review if called on to provide the half-billion pound shortfall for Tube Lines' delayed works. The crisis has led to fears that Tube Lines may follow previous PPP contractor Metronet into financial collapse.

The Mayor also reiterated his earlier position that Tube Lines earlier demand for £6.8billion was "scandalous" in the face of the arbiter's finding that the works should cost £4.46billion.

Mr Bolt is due to make his final decision on the funding in two weeks,

but the report may be delayed until after the May 6 election. Will this mean yet more misery for users of the "misery line"? We'll keep you posted.

      

Comments

       
  • Profile image for darien

    PS Go Boris!

    By darien at 22:03 on 20/04/10

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  • Profile image for darien

    We always knew that PPP had no place on the tube, and since we weren't given the opportunity to oppose it before it came in, sadly actions like this are the only way we have to clip its wings.

    By darien at 22:02 on 20/04/10

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