|Mayor To Take On Metronet|
After TfL is announced as sole bidder for failed tube company
Transport for London is expected to take over the maintenance of two-thirds of the Tube network from Metronet early next year after it was announced that they were the only bidder for the troubled company.
Metronet, who were responsible for the maintenance and renewal of maintenance and renewal of the District, Hammersmith & City and Waterloo & City lines amongst others, went into administration in July this year after running into millions of pounds worth of cost overrun problems.
Metronet administrator Alan Bloom confirmed that TfL's was the only formal bid to have been received for Metronet.
London Underground Managing Director, Tim O'Toole said “Under Transport for London's plans, the people and the assets of the two Metronet companies, BCV and SSL, will be transferred into two Transport for London nominee companies, which will be managed on a standalone basis whilst the long-term structure is agreed with the Mayor and Government.
“Transport for London believes it is in the best interests of all parties for an exit from Administration as quickly as possible. This is the best way to maintain the continued safe operation of the Tube network, to mitigate the performance and cost risks that inevitably come with such a situation, and to ensure the continuation of the Tube's vital upgrade and renewal programme.”
Tube workers’ union Unite’s Brian Harris, said, "TfL taking over the running of the Metronet tube contract is great news for the former Metronet workers who have endured a long period of insecurity. Unite wants the transfer of ownership to happen as quickly as possible and looks forward to working with TfL and London Underground Ltd to deliver a Tube system fit for London's needs."
Roger Evans, London Assembly Conservative Transport spokesman gave the news a more cautious welcome commenting, "“It will only be good news for London that Metronet has come out of administration if the deal reached between Transport for London, the Mayor and the Government is to be benefit of the travelling public."
November 7, 2007