Metronet crisis: administration costs 'nearing £500m'

The cost of keeping the failed Metronet consortium in administration is nearing £500m, the biggest union represented on London Underground has claimed this morning.

The RMT union called the cost a "shocking waste of public money" and has called for Metronet's contracts to be brought back into the public sector.

Metronet was expected to transfer out of administration to Transport for London by mid-January.

The first six months of administration, from July last year until January has cost £345.5 million, according to government estimates. 

The RMT claimed that with Metronet's administration costing £14.4 million every week, the extra cost will pass £500 million if the Metronet contracts remain in administration on 2 April.

Metronet, which was responsible for upgrading two thirds of the network, is being run by Alan Bloom, the Ernst & Young administrator.

RMT general secretary Bob Crow said: "The longer the Metronet contracts stay in administration the bigger the threat to the Tube upgrades that are essential if London is to have the world-class metro system it needs in time for the 2012 Olympic and Paralympic Games.

"It is unacceptable that the greed of parasitic shareholders should be allowed to undermine the capital's Tube network and the security of the workforce who will be delivering Tube improvements long after Metronet is forgotten," Bob Crow said.

TfL was not available for comment.