Metronet, the crisis-ridden private contractor responsible for maintaining and upgrading most of London Underground, is demanding more public money to bail it out of its problems.
The contractor wants an “interim determination” from Chris Bolt, who is the arbiter of the 30-year £30 billion tube public private partnership (PPP).
It also wants an emergency review of the reasons for the cost overrun at its BCV division.
BCV is responsible for the work on the track stations and trains on the Bakerloo, Central, Victoria and Waterloo and City deep-level tube lines.
If Bolt rules in favour of Metronet, London Underground would have to pay the contractor higher fees while the extraordinary review takes place, which will take a year.
Metronet BCV’s deficit looks set to be about £1 billion in the first seven years of its contract.
It wants to get hundreds of millions of this back.
The PPP system is facing a major crisis on London Underground.
The tube will need a minimum of £45 billion to upgrade London Underground between 2010 and 2020.
Around £22 billion will be raised from fares.
As Socialist Worker revealed on 2 June the contractors want to approach the government to get more money and make cuts in staff and safety regulations to make up the shortfall.
The PPP should be scrapped and workers and the public should fight any move by the government to bail out the privateers.