£500m wasted on Tube contracts

12.30.00pm GMT Fri 21st Mar 2003

Lawyers' fees could have paid for Tube improvements

Crazy money squandered on PPP legal costs could have put London's troubled Tube well on the way to recovery, new Lib Dem research has revealed.

The estimated £500 million paid to lawyers to draw up the 2,800 page contracts for private companies to maintain the Tube network would have bought new trains, new signalling, plus track, escalators and wheelchair lifts.

"What a way to run a railway!" commented Lynne Featherstone, London Assembly Liberal Democrat transport spokesperson.

"The Labour Government has chosen to pour taxpayers' money into the pockets of lawyers so that their fat cat friends can get juicy 30-year contracts at public expense."

"Our research shows that £500 million could have bought 35 new trains, renewed 60 kilometres of track, replaced signalling at 12 key Tube junctions, replaced or renewed 87 escalators, and provided 20 new wheelchair lifts."

"These upgrades would have hugely improved reliability and given everyone in London a much better service. The work could have been well under way by now."

"Labour knows full well what Londoners would have done with the money. But they just go ahead with their mad schemes anyway."

ENDS

Notes to Editors:

Christian Woolmar and other commentators have alleged that the bill for legal fees to construct and negotiate the contracts for the Public Private Partnership for the Tube (with the 'infracos' Metronet and Tube Lines) is in the region of £500 millions.

Liberal Democrat research at the London Assembly, using figures obtained from London Underground, gives examples of what could have been bought for £500 million. Choices made here are by way of illustration:

Signalling: replace signalling system at 12 Tube junctions £108m

Trains: supply 35 new trains £192m

Track: renew 60 km of Tube track £102m

Escalators: replace 50 escalators £50m

Overhaul 37 existing escalators: £28m

Wheelchair access: provide 20 new wheelchair lifts £20m

Information on costs from London Underground Limited:

Cost of a lift/escalator replacement - £1m (Typical figure but could easily be doubled depending on associated costs such as new power supply or structural alterations)

Cost of an escalator overhaul- £750k (Typical figure but could easily be doubled depending on associated costs such as new power supply or structural alterations)

Cost of MIP (wheelchair friendly) lift installation - £200k (Typical figure but could easily be doubled depending on associated costs such as new power supply or structural alterations)

Cost of a station refurbishment (average) - £5m for a standard refurbishment - obviously the costs would be higher for a bigger station

Cost of renewing approx 1 km of track - £1.7m for a full enhanced track replacement (rails, sleepers, ballast, power supply etc)

Cost of 1 new train (average) - £5.5m( average cost of each car would be just under a million so the average is based on a 6 car train)

Cost to re-signal an interlocking site (in English a junction) would be approximately £9m - this figure varies greatly.