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Capita contracts |
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Scrapping the congestion charge would
require negotiation with Capita, the company which runs the scheme. It
has recently been announced that IBM will take over from Capita in 2009.
The full details of the contracts are commercially confidential but when putting together the
original contracts and in subsequent negotiations, parties knew that the congestion charging
scheme was politically controversial and it would be reasonable to
suppose that termination following an election was addressed.
Capita would probably want some form of compensation but this need not
result in large payments. Most of Capita's work is for the public sector
and they could be an important partner in new measures to cut congestion
through better driver information systems. Neither Capita or IBM would not want to risk
future business by seeking to frustrate a vote to abolish the charge. A
deal could be done.
The financial benefits to London of abolishing the charge are great. Any
costs that did arise, would be met by cutting waste in Transport for
London.
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