Transport union RMT today welcomed what it says is a "significant victory" over the Government's Transport for London Bill

The Transport for London Bill was introduced into Parliament to allow TfL to participate in novel company structures – including opaque, tax avoiding offshore structures that are well-known vehicles for laundering capital. Specifically, TfL intended to jump head first into the worst kind of corporate structures known as “Limited Partnerships” to maximise the profit it hoped to make from developing the land it owns above and around stations.

That TfL was keen to acquire the power to engage in “Limited Partnerships” – already identified as the means by which vast sums were stolen from the Moldovan Central Bank - only arose from the necessity for it to fill an impending funding gap. In particular, the announcement by the Treasury that it would be scrapping the £800 million grant it receives from central government – and that the money would be disappearing to an accelerated timescale.

RMT in conjunction with Andy Slaughter MP, John McDonnell MP, and numerous other labour MPs and the Save Earls Court Campaign combined together to petition against the Bill and try to prevent the most ill-conceived aspects of it from becoming law. TfL used every trick in the book to try and push its Bill through Parliament – including the offer of sweeteners, procedural sharp practice and the threat of legal costs.

The petitioners and MPs held firm and a cross-party Parliamentary committee agreed that the key clause of the Bill (clause 5) was in need of significant amendment. Now, five years later, with many thousands of pounds spent on lawyers, TfL has finally conceded defeat and agreed not to seek to acquire the power to enter into “Limited Partnerships”.

This is a real breakthrough – TfL never had sufficient competence to avoid being taken to the cleaners by property sharks. With a fresh financial crisis brewing and an increased risk of corporate defaults – especially in the over-leveraged property sector, TfL has been saved from itself in the nick of time.

 

RMT General Secretary Mick Cash said:

“We welcome that TfL has finally agreed to moderate its plans. TfL made a complete mess of the Earls Court development and was setting itself up to lose hundreds of millions of pounds by disposing of state assets far too cheaply.

“However, the story is not over yet. The proposals for commercially exploiting TfL land are coming in thick and fast. Accordingly, we will remain vigilant while the remaining provisions of the Bill return to Parliament for final scrutiny."

> RMT National News

Monday, 12th October
An RMT member employed as a London Underground Revenue Control Inspector faces possible dismissal after intervening during an assault on staff and a passenger at Bond Street station.
Friday, 9th October
RMT members working as Train Managers for Chiltern Railways will be taking 24-hour strike action tomorrow (Saturday 10th October and also Saturday 17th October) after the company refused to provide guarantees over the safety critical role of the second person on board proposed East West Rail services.
Monday, 5th October
RMT members working for Wood Group will begin strike action tomorrow (October 6) at 00:01 hours in defence of their existing terms and conditions.
Friday, 2nd October
TUBE union RMT announced strike action this weekend by members on the Mitie cleaning Transport for London contract from Sunday October 4 to Wednesday October 7 over the imposition of spycams.
Friday, 2nd October
RAIL UNION RMT has suspended strike action by conductors planned for Sunday October 4 on Transpennine Express.