Tube firm collapse.

[Gromit]

Metronet, the firm who were contracted to maintain some of the London Underground system has collapsed.

Metronet had been foisted on London Underground under a Public-Private Partnership (PPP). Mayor Ken opposes PPPs as being a rip-off.

The advantage for the tax payer is supposed to be long term stability, investment and commercial savvy. The reality is that Metronet massively overspent and came cap in hand to the taxpayer. When the tax payer only coughed-up �121M they called in administrators.

Tube Lines, the private contractor which maintains the other Underground lines, has not suffered any substantial cost over-runs.

And the question is, which if any of the following statements do you agree with?

1. Metronet bit-off more than they could chew by tackling the Underground system

2. Metronet were set up to fail for political reasons

3. PPPs are bad contracts and the taxpayer should avoid them

4. London Underground should have paid the extra �2Bn projected overrun

or maybe you have an entirely different take?

[China Doll]

1) Yes

2) No. (But they were always going to fail).

3) Yes. (In all public sectors).

4) Darn tooting.

[WaldoMcFroog]

1 & 3

[jno]

Metronet was one of two companies in this line of business. The other one, Tube Lines, which handles other tube lines, is doing ok. They had different business models. Tube Lines puts the individual jobs out for competitive tender. Metronet just handed them around the companies that owned it. So I think the answer is simply that Metronet failed because it was incompetent. Gordon Brown, who was behind this whole thing (Ken Livingstone took him to court over it and lost), certainly didn't want it to fail; it's a big embarrassment for him.

[helpmetoo]

red ken should have sanctioned more spending on the tube system,
and LESS on the buses,
even during rush hour periods there are buses running around with single figure passengers on board,
spending a large percentage of the congestion charge revenue on empty red buses is folly considering their impact on pollution,
perhaps buses are more visible...all show and no go!!!

bring on the boris!

[Gromit]

jno

And because of the Olympics, Ken has got the Government over a barrel. Looks like Brown got out of No.11 just in time.

[Trotbot]

1&3 yes, definitely not 4. You sign a contract and unless the facts were misrepresented (not merely misunderstood) you live with the consequences. If a few more fail, perhaps we can stop this off balance sheet nonsense and profiteering.