Tube Lines has rubbished London mayor Boris Johnson鈥檚 claim that it can meet the potential 拢400m shortfall in funding for the next seven-and-a-half years of its PPP contract

In an attack on the tube maintenance consortium last week, Johnson called on the government to 鈥渆nsure that Tube Lines鈥� shareholders Ferrovial and Bechtel forgo the huge sums they receive under so-called 鈥榮econdment agreements鈥� in order to plug the gap鈥�.

Speaking to 黑洞社区 this week, Steve Hurrell, Tube Lines鈥� finance director, said Johnson鈥檚 claims were 鈥減reposterous鈥� and the shortfall could force it to make job cuts during the period, which begins in July.

He said: 鈥淭he mayor鈥檚 statement is groundless. The arbiter [Chris Bolt] has said we get about 拢195m in secondment fees, which is a fair reflection. Considering our contract liability of around 拢120m, the risk we are taking is quite significant.鈥�

The row began in December when Bolt found that London Underground (LU) should pay Tube Lines 拢4.4bn over the next seven-and-a-half years, rather than the 拢5.75bn the consortium was demanding or the 拢4bn that LU was insisting on.

Hurrell admitted that working towards the 拢4.4bn figure would be 鈥渃hallenging鈥� and that Tube Lines would need to make savings, including job cuts, to accommodate the changes.

Doing more heavy maintenance will mean a change in the workforce

Steve Hurrell, Tube Lines

He said: 鈥淥ne of the outcomes is less spend on pure renewal and doing more heavy maintenance instead. This would mean a change in the workforce.鈥�

Meanwhile, Tube Lines is continuing to pursue separate cost claims against LU. A 拢20m claim for station work could be followed by others. Hurrell said: 鈥淚f it is successful, we will pursue up to 拢200m for work done on other stations.鈥�

The PPP arbiter will publish its final determinations on the spending budget on 4 March.

Tube Lines owns the concession to upgrade the Jubilee, Northern and Piccadilly lines.