On 16 November the Independent Public Private Partnership (PPP) arbiter, Chris Bolt, published a report on the performance of tube maintenance and renewals companies Metronet BCV [Bakerloo, Central, Victoria] and Metronet SSL [Sub-Surface Lines]. The RMT made representations to the arbiter as he was considering his position.

The report considered the period April 2003 to March 2006 and the arbiter has concluded that “…neither of the two Metronet Infracos has performed in line with required standard over the period as a whole”.

Despite this damming criticism TfL are still pressing ahead with plans to extend the role of the privateers to tube passenger services with the privatisation of the East London Line.

The report explains that across most categories of work there are issues arising from Metronet’s ability to manage cost and delivery:

* Generally costs are higher than bid

* Delivery is delayed

* Metronet is slow to adapt/change and

* Its approach is generally reactive

None of this will come as a real surprise to RMT members employed by Metronet or those working on LUL or at the other Infraco Tube Lines. Your union has long argued that the PPP represents little more than a risk-free way of turning public funds into profits for private shareholders. In 2005/06 BCV and SSL made combined retained profits of almost £25million.

The arbiter’s report also explains that Metronet is on-line to overspend by £750 million by 2010. This begs the question of who will pay for this overspend...

... The travelling public by an increase in fares?

... Metronet workers through the company refusing to make decent improvements in terms and conditions in the future?

... The tax payer through increased public subsidy?

RMT strongly believes that in fact none of the above should bear responsibility for Metronet’s problems. Instead the PPP should be scrapped with Government bringing forward legislation to remove the privateers and return engineering functions to the public sector under London Underground Limited.

In the near future members of the RMT Parliamentary Group and other sympathetic MPs will be tabling an Early Day Motion in the House of Commons about the arbiter’s report.

As members will know Balfour Beatty is one of the companies that make up Metronet. Astonishingly In late October a joint venture of Balfour Beatty and Carillion were awarded a £363million contract to build the East London Line extension.

As part of the ongoing campaign against the PPP and privatisation of the East London Line a lobby and fringe meeting have been organised at the London Labour Party conference on 25 November. Please make every effort to attend these two important campaigning events.


London Underground: Public Service or Private Profit?
MOBILISE FOR LOBBY AND PUBLIC MEETING.

LONDON LABOUR PARTY CONFERENCE, STRATFORD
25th NOVEMBER 2006

LOBBY

8.30 – 930 Stratford Old Town Hall, 29 the Broadway
PUBLIC MEETING
12.30 – 2.00, East London Centre, Boardman House, 64 Broadway
Speakers include,
Bob Crow, RMT General Secretary,
Manuel Cortes, TSSA Assistant General Secretary
Jeremy Corbyn MP
Refreshments Provided