Cabinet 'riven with splits over Tube'

Former Treasury Minister Geoffrey Robinson has sparked a new row over the Tube by revealing that the Cabinet was so riven with splits over how to carry out part-privatisation that it was forced to hand the crucial decision to four businessmen.

In an extraordinary admission, the former paymaster general admitted that Tony Blair, John Prescott, Gordon Brown and their advisers were all at odds and could not agree a new structure for the Tube.

Eventually, four businessmen were appointed in 1998 to recommend how the network would be carved up and break the deadlock.

Mr Robinson's disclosure astonished MPs during a Commons debate on the future of the delayed public-private partnership (PPP) which is opposed by London Mayor Ken Livingstone and many Left-wing Labour MPs.

He ignored MPs' challenges to name the quartet, sparking charges of a cover-up. A Treasury spokesman later claimed that the Government could not name the four because officials had no idea what the former minister was talking about.

Last night, however, in response to questions-from the Evening Standard, Mr Robinson named the panel. It was chaired by Sir Malcolm Bates, current chairman of London Regional Transport who has been linked in the past with companies bidding to run the Tube infrastructure.

The other members were John Roques, a leading accountant and former senior partner with Deloitte & Touche; Sir Graham Hearne, chairman of Enterprise Oil; and Ed Wallace, chairman of PowerGen.

Despite the MPs' protests of secrecy and the Treasury's apparent surprise, the fact that business advisers were called in to help the Government decide how to divide up the Tube was disclosed at the time in the Evening Standard.

But the astonishing portrait of ministerial feuding and wrangling blurted out by Mr Robinson surprised even his supporters. "We had to find a way forward," he said. "We could skin the cat in so many ways and there were many different options available. No 10 had its view; the advisers to No 10 had their view. The then Department of Transport, Local Government and the Regions had its view; I had my view; the Treasury had a view - and the Deputy Prime Minister had very strong views."

Eventually Mr Prescott agreed to let Mr Robinson convene the panel of four businessmen, who proposed the current plan which will let private investors buy into Tube lines while the public sector keeps control over services, timetables and safety.

After the debate, Mr Robinson said the businessmen were chosen because they had experience of major privatisations. "They were, therefore, the very best people to advise the Government on what would work," he said.

Opponents of PPP were not satisfied. Lib-Dem spokesman Tom Brake said: "I am appalled. First, John Prescott said the Greater London Authority would decide what to do with the Tube. Then we were told the Government had taken back the decision. Now it transpires ministers abdicated their responsibilities to four unnamed and unaccountable businessmen.

"We need a full statement from the Government to ensure that there was no conflict of interests arising from their involvement."

In a Commons vote on PPP last night, ministers beat off a threatened Labour rebellion by 201 votes to 33. In the end, only Liberal Democrat and Tory MPs voted against the Government but a number of Labour backbenchers strongly criticised the plans during a three-hour debate.