More questions raised about Metronet

11.16.28am UTC (GMT +0000) Wed 5th Sep 2007

Information obtained by the London Assembly has raised further questions regarding future arrangements and costs following the failure of Metronet.

In response to questions from Liberal Democrat Assembly Chair, Sally Hamwee AM, Mayor Ken Livingstone has sent her a detailed letter with information about the costs of the Administration, the £900 million loan facility, and the possible implications for Transport for London's other commitments.

Sally Hamwee said: "The Mayor's letter raises a number of issues that we will actively pursue, including the costs of the Administration, the level of Metronet's debt and who is responsible for it, the possible effect on the rest of TfL's programme, and the consequences if TfL's funding is designated State Aid by the European Commission. Above all, what does this mean for London's commuters?"

The Mayor's letter will inform the Assembly's Transport Committee, ahead of next week's (11 September) meeting with Alan Bloom, Metronet's Administrator - Ernst and Young, Tim O' Toole, Managing Director of London Underground - TfL, and Chris Bolt, PPP Arbiter. The letter will also be reported to Assembly Members at the next Mayor's Question Time on 12 September.