London mayor says he will not reverse transfer of control to Transport for London
London mayor Boris Johnson has told Building he does not intend to challenge or attempt to reverse the move to transfer control of collapsed tube contractor Metronet to Transport for London.
The long running saga to transfer control moved a step closer today after a date was fixed for a court hearing to finalise the move.
The hearing is scheduled to take place on 23 May at the High Court of Justice in Liverpool and is expected to approve and set a date for the transfer of all Metronet's staff, contracts and assets to TfL ownership.
The open hearing will also allow interested parties such as creditors to object to the transfer.
Johnson’s predecessor Ken Livingstone championed the move to bring control of the tube refurbishment back under public ownership, and some commentators suggested Johnson may oppose the deal.
A spokesperson for TfL said: "Clearly the new mayor will have to work with the government to establish a framework for Metronet once TfL assumes control."
Administrators Ernst & Young are writing to creditors to provide further details of the transfer schemes.
The two Metronet companies, BCV and SSL, collapsed into administration last year amid £2bn of cost overruns on its contract to refurbish around a third of the London Underground.
Metronet BCV is responsible for the maintenance and renewal of the Bakerloo, Central, Victoria and Waterloo & City lines while Metronet Rail SSL is responsible for the maintenance and renewal of the Circle, District, Hammersmith & City and Metropolitan lines.
The collapse of Metronet has been a major source of embarrassment for Gordon Brown, who had hailed the framework of the tube refurbishment contracts as a prime example of the Public Private Partnership (PPP) model.
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