Livingstone loses fight to block Tube plans

London Mayor Ken Livingstone today lost his High Court bid to block the Government's controversial proposals for part–privatisation of the Tube.

His lawyers argued the £13 billion public private partnership (PPP) scheme would result in an Underground that was "fragmented, inefficient, uneconomic and ... unsafe."

Rejecting Mayor Livingstone's application for judicial review, Mr Justice Sullivan ruled it was for the Government – not the Mayor – "to have the last word".

Mr Livingstone said: "As the judgment makes clear, today's decision is not on whether the Government's PPP is safe or efficient.

"The court's decision is simply that, irrespective of these issues, the Government has the legal right to impose this scheme on London.

During a hearing last week, lawyers for Mayor Livingstone – acting for his transport authority, Transport for London – asked a judge to declare that it would be unlawful for London Regional Transport (LRT) and London Underground Ltd (LUL) to enter into any PPP contracts.

The Government's proposals were "incompatible" with his own Transport Strategy, drawn up to comply with his legal duty to provide an efficient and safe Underground system for the capital.

But today Mr Justice Sullivan ruled the Government, LRT and LUL did not have to comply with the Mayor's strategy, but only have regard to it.

The Mayor and TfL would eventually gain legal control over the Tube system – "but only after the Government has been able to introduce its own version of PPP".

Today's decision is a dramatic victory for the Government, which believes its £13 billion Public Private Partnership plan (PPP) is the best way to fund a much–needed revamp of the network.

Mr Livingstone and his Transport Commissioner Bob Kiley, who will eventually take over control of the network, have condemned the plan as fatally flawed.

London Underground Limited and London Regional Transport fought today's legal challenge, saying it had no legal basis.

During last week's application for judicial review, Richard Gordon QC, for TfL, said the PPP was "incompatible" with Mr Livingstone's legal duty to run a "safe, integrated, efficient and economic" transport network.

The Government was defying Parliament's wishes in trying to force through PPP because Parliament has set up the legislation to install a democratically elected Mayor that would eventually have control over the capital's transport network, he said.

Under PPP, maintenance and renewal of the network including track, tunnels and signals would be undertaken by private companies on 30–year leases while management of the system would remain LUL's responsibility.

This would leave Mr Livingstone to "carry the can" for a system that he was responsible for but had little control to manage, Mr Gordon said.

He added this was like work being carried out on "a series of houses one owned and having very little control over how the work is carried out."

John Howell, QC, for LUL and LRT told the court that Parliament had not given the mayor the power to veto any PPP contracts entered into by LUL and LRT. Neither organisation needs to gain the mayor's approval to enter into them.

He said: "Parliament has given the Secretary of State the veto over any PPP arrangement which may be made – but Parliament has quite plainly decided not to give the Mayor one."

Today the judge plainly agreed with Mr Howell.

Ken Livingstone and TfL were given leave to appeal. If an appeal goes ahead itis most likely to take place on September 17.