Q31 Jon Trickett: You have agreed to that. You have agreed to that sentence.
Mr Rowlands: It is not saying that the price is unreasonable. Had the price been unreasonable the Department would not have signed it off.
Q32 Mr Williams: There is only limited assurance that it is reasonable.
Mr Rowlands: Because greater price certainty, as it says here, could only have resulted in a higher price. It was a trade-off between risk and price.
Q33 Mr Williams: If you are buying a secondhand car on that basis you would be very conscious of caveat emptor.
Mr Rowlands: Indeed, and the problem with this secondhand car is the tunnels are 150 years old and nobody knows what state they are in.
Q34 Jon Trickett: You have agreed to this sentence.
Mr Rowlands: Yes.
Q35 Jon Trickett: You assent to this sentence?
Mr Rowlands: Yes.
Q36 Jon Trickett: Okay. I want to move on then. Paragraph 12 of the same Report talks about the seven and a half year periodic review. This is rather important, given the sentence we have just talked about, because periodic reviews tend to make sure the contracts are on track and one of the recommendations on page 11, paragraph 12 says that "LUL report that initial information to date from the Infracos is inconsistent and, in some cases, inadequate". Can I ask Sir John where the evidence is for that for the Members to consider?
Ms Leahy: You are asking for the evidence for that sentence?
Q37 Jon Trickett: Yes, where is the evidence for that sentence?
Ms Leahy: That is a statement that LUL made to us, a statement that Mr O'Toole and many of his colleagues have made. We do not have any evidence of that, we put it as that is what they have reported to us.
Q38 Jon Trickett: Is the periodic review, as I stated it, a rather important matter in making sure the contracts are on time but also economic and so on? Therefore, I would have expected further information to back that sentence up. I do not want to delay things now but I wonder whether supplementary information could be provided as to in what way you find the information from the Infracos inconsistent and in some cases inadequate and what steps you have taken to ensure that you get adequate information? Can you provide us something about that in writing, please?
Mr Rowlands: I cannot because this is an LUL statement, I am sure Mr O'Toole can.
Mr O'Toole: I would be happy to.2
Q39 Jon Trickett: Fine. Thank you very much. I want to go on to the highlighted block below. "If partnership is to work, LUL needs to be given accurate, consistent, and regular information…". That paragraph then is supplemented by a reference to paragraph A3.4. Can someone tell me where A3.4 is, please, in the Report because there is no such paragraph? Where is that paragraph?
Mr Rowlands: It is actually in A3.2 if that is helpful.
Q40 Jon Trickett: It is not because I have not had a chance to look at it.
Mr Rowlands: I think that is where it is, page 20.
Jon Trickett: It refers to A3.4, if you go to page 21 you will find A3.3 but there is no A3.4.
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