Oyster card firm sacked after failures

Tube chiefs today sacked the Oyster card private sector contractor from a £100million-a-year deal following spectacular failures of the system.

It collapsed twice last month allowing hundreds of thousands of commuters to travel free.

Transport for Londonwas also forced to reimburse thousands of passengers who had their cards wiped clean when they used the automatic "touch" machines at the ticket barriers. On both occasions the fault was laid at the doors of the contractor.

London Transport Commissioner Peter Hendy was said to be "incandescent with rage" at the failures, saying he was determined that "not a penny" of the cost should be paid by London's fare or taxpayers.

TfL will now end its contract with TranSys, the consortium whose principal partners are EDS and Cubic, in 2010. The original contract, which had run from 1998, was for 17 years and is worth around £100 million a year.

However, there was a "break" clause from 2010. A spokesman said: "We are exercising the break option."

Mayor Boris Johnson said he was "convinced" any new contract would deliver enhanced services at lower cost.

In a statement TranSys said: "TranSys, the consortium responsible for delivering Oyster, has received official notification that TfL has invoked the break clause which forms part of the PRESTIGE contract.

"As with the majority of PFIs, the PRESTIGE contract, which has been in existence since 1998 and includes Oyster, incorporates a ten year break clause element.

"The London transport system has changed dramatically over the past ten years. For the benefit of all stakeholders, contract negotiations have been taking place over the last year between TranSys and TfL. The TranSys consortium will continue to operate and deliver for the next two years."