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GOVERNMENT MUST 'MIND THE GAP' IN FUNDING OF LONDON UNDERGROUND

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The Guardian (p21) carries an article on the difficulties facing the government's public-private partnership scheme...
The Guardian (p21) carries an article on the difficulties facing the government's public-private partnership scheme for London Underground, which it says will need subsidisation just to stop the system collapsing.

It says there will be a funding gap of between£110m and£175m a year between what the PPP will cost and what the Tube can afford.

The article, written by Jean Shaoul, of the school of accounting and finance at Manchester University, says that every year the PPP would require some combination of national and local funds to subsidise maintenance of the tube, with nothing left over for much-needed expansion.

She adds: 'This will necessarily be more than the pittance the Tube now gets. Thus the PPP companies - or the bond financiers - would gain effective control over transport policy. This is a fundamental and unwanted change in our public services.'
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