The decision to agree to the signing of contracts between London Underground and the private sector, taken by the Board of London Transport today, followed an extensive consultation process with London's Mayor Ken Livingstone and Transport Commissioner Bob Kiley.

London Underground has made a number of improvements to the contracts in response to the views expressed during the consultation process, including the consultation since February 7. These changes have helped strengthen the contracts to ensure they deliver the best deal for the public.

In responding to the Board's announcement, Stephen Byers said:

"This decision must now lead to badly needed and long awaited improvements to the network's track, trains and stations and more comfortable, faster and reliable journeys for passengers.

"This deal will also see guaranteed and focused investment worth £16 billion put into the Underground over the next 15 years and has been shown to offer good value for money when judged against alternative proposals.

"The Health and Safety Executive has still to reach a final judgement on London Underground's revised Railway Safety Case. The position therefore remains that the Tube modernisation plans will only proceed if the safety arrangements are accepted by the independent safety regulator.

"The Government has also confirmed its biggest ever commitment to sustained funding, averaging £1 billion in annual grant on offer to Transport for London, over the next eight years.

"I am satisfied that the PPP arrangements are not a privatisation. London Underground has and will continue to be a service for and owned by the people. This is reflected in the fact that London Underground's infrastructure assets will not move off its balance sheet.

"Under the modernisation plans fares will continue to be the responsibility of the Mayor of London. The modernisation does not require fares to rise faster than inflation."