On Fri, 14 Oct 2005 18:54:54 GMT, "Mal"
wrote:

I just watched the 18:30 news. The MD of Tubelines said that they inherited
this problem as the stock is 10yrs old.
This is the start of the "we won't have to pay any damages" process. Lets
not forget, this is a private company with shareholders who will be very
upset if they dont get a dividend. Its up to the MD to fight against, and
find any reason why they should not pay a penalty. I guess he has to because
if he doesn't, he could be out of a job.
Can anyone tell us what the penalties might be under the PPP. Providing its
found they are negligent in providing trains to provide a service.

Yes well dear old Terry would say that wouldn't he. As you say the "war
of words" begins. I shall have to wind him up next time I see him at
work or on a train from the West Midlands! You never know - his press
and PR people might even be reading this waves ;-) [1]

Let us just say that the potential abatements are a very large number
indeed. It should also be noted that there is a PPP contract between LU
and Tube Lines and then a PFI one from Tube Lines to Alstom. It is for
TLL to recover from Alstom under the terms of that PFI contract. LUL
recovers separately and on a different basis under PPP. I think it is
fair to say that TLL signed the PPP contract with their "eyes open" and
with plenty of risk finance - the old inheritance argument doesn't stand
up but I understand why it is being trotted out now.

There has been some speculation on the group. From my limited knowledge
of the detail *I* would be looking very strongly at the maintenance
practices and quality levels provided by Alstom. It is also worth
bearing in mind the recent history of Alstom and what they have needed
to do in order to survive. Their overall success level in the UK on
train orders and the performance of those fleets should also guide
people in considering how Alstom may view their exposure and position in
the uk rolling stock market. This is a very complex situation and again
from a position of limited knowledge I certainly would not be
criticising Tube Lines, LU managers or our train drivers. It's a
dreadful mess but there is a hell of a lot being done to sort it all
out.

Just to emphasise the above is my view - not necessarily that of my
employer.

[1] I'll probably get a bollocking on Monday as the LU press and PR
people do read this group!

--
Paul C


Admits to working for London Underground!