We already know what’s in the report because a draft was leaked to the press some years ago

We already know what’s in the report, because a draft was leaked to the press some years ago. If anything, the final version is likely to be even more watered down than the first, as the lawyers have got to it since then. Mr Guinness’s account, which is as much about the passing of his family’s involvement in the company as the scandal itself, may yet upstage the inspectors.. The London Tube network could fall into French ownership, it emerged yesterday, when Generale des Eaux, France’s largest utility group, threw its hat into the ring as a potential bidder. Chris Godsmark, Business Correspondent, assesses the growing interest in the Underground. Jean-Marie Messier, chairman and chief executive of Generale des Eaux (GE), said in London yesterday that the acquisitive multinational utility empire would be interested in buying part of London Underground if the Government decided to press ahead with a full-scale privatisation. “It’s an interesting idea,” said Mr Messier, who said he was waiting to see the outcome of the review of the tube launched by John Prescott, Minister for Transport and the Environment, after the election.
However GE warned that it would only become involved as a train operator and had ruled out taking over responsibility for infrastructure such as track and signalling.

“We don’t want to be the World Bank provider of finance on environmental infrastructure,” he said. One possibility was that the French group would join a consortium which would reflect expertise in both areas.GE pledged to continue its aggressive expansion in the UK, which has seen its turnover rise to almost pounds 2bn in just 10 years. Mr Messier said GE intended to invest “some hundreds of millions of pounds” in the UK over the next three to five years, on top of the pounds 2bn invested so far.The company claims to be the largest passenger transport operator in the UK, with control of two of the biggest privatised rail franchises on London commuter routes, Connex South Central and Connex South Eastern. It also owns four drinking water companies, has a 40 per cent stake in General Cable, the cable telephones and TV group, and is the UK market leader in waste disposal.The interest in tube privatisation could further complicate the discussions between the Treasury and Mr Prescott’s office. Price Waterhouse has drawn up a list of possible sell-off options which were sent to the Prime Minister’s office last month. They include dividing responsibility for track and train operation, mirroring rail privatisation, breaking up the tube into separately run vertically integrated lines, or a sale as a single business.However Mr Prescott is known to prefer selling a concession to run the track and signalling, lasting around 20 years, but keeping train operation in state ownership, a move which would dent GE’s ambitions. Railtrack and WS Atkins, the civil engineering group, have both been tipped as potential infrastructure bidders.However, the pressure from other interested private sector train operators, including Virgin, could force a reappraisal in Whitehall.Meanwhile Mr Messier fuelled the pressure from business for the UK to join the single European currency.

He said the euro would “not be the euro until the British pound joins”. The decision to join some time after the next election seemed perfect, he added “I cannot imagine the UK staying outside for too long.”. City economists remain convinced that European Monetary Union will start on time, despite this week’s fears of a meltdown in world financial markets and the gulf that has opened up between the Government and the Conservatives over the single currency issue. The Independent’s panel of experts now rate the chances of EMU being up and running in 1999 at 83 per cent, fractionally higher than a week ago.
Turmoil in the Far East financial markets is causing concern and, according to Robert Prior at James Capel, if the speculators turned their attention to Europe, the Greek drachma and Italian lira would be the most likely targets.Michael Lewis at Deutsche Morgan Grenfell said the currency crisis in emerging markets might even help the EMU cause, provided it does not undermine the dollar.

The reason is that it has reduced the need for a rise in US interest rates which could have imposed further strains on some European currencies, most notably the French franc and the lira.. British Gas yesterday cast doubt on claims by Ofgas, the industry watchdog, that 400,000 of the company’s customers in Scotland and the North-east of England would switch to rival suppliers when domestic competition goes live from tomorrow. A further 2.5 million homes will be able to desert British Gas, now the brand name of the Centrica group, on top of 2 million taking part in competition trials in the South of England. Ofgas claimed one in six households had signed contracts with new suppliers, but British Gas said the true figure was one in 18 homes “We would categorically disagree with the numbers.