UK transport firm Metronet facing administration
{{date|July 16, 2007}}
[[Image:TubeStationWithTrain.jpg|right|thumb|A [[w:London Underground|London Underground]] station with train.{{image source|[[w:User:DoorFrame|DoorFrame]]}}]]
Transport company [[w:Metronet|Metronet]], the firm responsible for upgrading three-quarters of London tube system, is facing administration following a preliminary decision from rail arbiter [[w:Chris Bolt|Chris Bolt]] which limits the amount that [[w:London Underground|London Underground]] (TfL) is obliged to pay for cost overruns to £121 million. The company had asked for £551m.

The arbitrations follows a row over who should pay for the overspend, estimated at between £1.2bn and £2bn in total. Metronet have claimed that the costs are due to changing requirements from TfL. This was disputed however by TfL and the Mayor of London, who has said previously that the costs were due to "management incompetence".

The Mayor of London, Ken Livingstone, has previously stated that he will not give Metronet one penny more than he is legally obliged to, and that if they go into administration TfL will step in and take control.

The company was awarded the tube contract under a [[w:Public-private partnership|Public-private partnership]] arrangement, which was a central policy of the Labour government, but fiercely (and legally) contested by the London Mayor.

The Metronet board have said they are considering their position and will make a statement later today or tomorrow.

==Sources==
*{{source|url=http://news.bbc.co.uk/1/hi/business/6900360.stm
|title=Metronet is facing administration
|author=
|pub=BBC News Online
|date=July 16, 2007}}
*{{source|url=http://business.guardian.co.uk/story/0,,2127404,00.html
|title=Metronet faces administration
|author=Dan Milmo, transport correspondent
|pub=Guardian Unlimited
|date=July 16, 2007}}
*{{source|url=http://news.independent.co.uk/business/news/article2773637.ece
|title= Metronet 'to pay most of Tube overrun bill'
|author=Peter Woodman and Sam Marsden, PA
|pub=The Independent|date=July 16, 2007}}
*{{source|url=http://www.tfl.gov.uk/corporate/media/newscentre/5484.aspx
|title=London Underground responds to PPP Arbiter’s Metronet BCV Extraordinary Review draft Interim Determination
|author=Transport for London
|pub=TfL website (press release)|date=July 16, 2007}}

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{{Archived}}

[[Category:Transport]]
[[Category:London]]
[[Category:England]]
[[Category:Economy and business]]
[[Category:Ken Livingstone]]
[[Category:London Underground]]
London Underground station with train.
Transport company Metronet, the firm responsible for upgrading three-quarters of London tube system, is facing administration following a preliminary decision from rail arbiter Chris Bolt which limits the amount that London Underground (TfL) is obliged to pay for cost overruns to £121 million. The company had asked for £551m.

The arbitrations follows a row over who should pay for the overspend, estimated at between £1.2bn and £2bn in total. Metronet have claimed that the costs are due to changing requirements from TfL. This was disputed however by TfL and the Mayor of London, who has said previously that the costs were due to "management incompetence".

The Mayor of London, Ken Livingstone, has previously stated that he will not give Metronet one penny more than he is legally obliged to, and that if they go into administration TfL will step in and take control.

The company was awarded the tube contract under a Public-private partnership arrangement, which was a central policy of the Labour government, but fiercely (and legally) contested by the London Mayor.

The Metronet board have said they are considering their position and will make a statement later today or tomorrow.
Transport London England Economy and business Ken Livingstone London Underground