Bridget blogs: Down the tubes
“Tubelines are the surviving partners in Gordon Brown’s big idea for financing tube improvements, the Public Private Partnership or PPP. Like the other PFI deals, it was set up as a fixed-price, longterm contract, that would ‘outsource risk’ to the private sector by setting financial penalties if the job wasn’t done to time and on cost. So how has that worked in practice?
“Metronet found they couldn’t deliver as agreed, so first asked for more money and more time – and then walked away from the job. Tubelines, still with us, are relatively-speaking, the good guys.
“They’ve completed their projects so far by playing a more cautious game: but that involves charging more money over a longer timescale than many commentators think is necessary. Londoners are literally paying the price, in taxes, in fare rises and in disruption. So much for outsourcing the risk.”
Read the full post on Bridget’s blog.
Entry filed under: Bridget4Islington.