Metronet bill reaches £2bn

The government has revealed the £2bn cost of allowing Transport for London to take over from the collapsed Metronet consortium.

Until it went into administration, Metronet was responsible for the maintenance, renewal and upgrade of parts of the London Underground infrastructure.

Transport secretary Ruth Kelly said she would now be seeking rapid parliamentary approval for the cash transfer, which is needed to fulfil guarantees contained in the contracts for the public-private partnership.

In addition to £1.7bn to allow TfL to take over the debts, the funding includes additional grants to replace planned Metronet borrowing up to 2010 and further cash to give TfL short-term flexibility "while the costs associated with Metronet’s administration remain uncertain".

"The settlement gives London Underground the resources needed to manage Metronet's administration, and to support moving toward a more stable long term footing and to continue the work to maintain, renew and upgrade the Underground," Kelly said in a statement.

But Conservative mayoral candidate Boris Johnson said: "This has capped the shambles that brings shame upon all concerned.

"While the government squirms, tonight, tomorrow, and every day stretching into the distant future, Londoners will continue to have to endure chronic overcrowding and an unreliable service.

"Londoners will be left lamenting that this vast sum will be swallowed into a black hole that will demand more and more cash.

"Today the government picks up the tab, will it be London's farepayers tomorrow?"