Boris Johnson urged to be more 'transparent' with TfL finance details

It followed an accusation that TfL is conducting "more and more" deals behind closed doors despite the Mayor's election manifesto pledge to stop this happening.

TfL has reached an agreement with CBS Outdoor, the company which manages all the advertising posters and panels on the Tube, following a dispute over the contract, worth hundreds of millions of pounds, and due to last until 2015.

The deal will prevent blank advertising screens during the Olympic Games. CBS Outdoor warned it would pull the contract and launched a claim for damages, as revealed by the Evening Standard, last year.

It was a last-ditch attempt to renegotiate the loss-making contract it has held since 2006. A High Court case, now dropped, was threatened this Spring.

Neither TfL not CBS would discuss details of the deal, including how the agreement has been reached.

Caroline Pidgeon, leader of the Lib-Dem group at the London Assembly and the transport committee, said: "The end of the legal dispute might seem welcome but the key issue is whether it has come at a high price to Londoners.

"Despite Boris Johnson being elected promising greater transparency about how public money is being spent, the reality is more and more deals at TfL are being done behind closed doors."

The Mayor's spokesman said; "This administration brought transparency to every area of work they are responsible for and every single item of expenditure down to £500 is put online at www.london.gov.uk.

"The Mayor will always seek to provide Londoners with the best value and the maximum bang for their buck when negotiating with private companies. However TfL needs to maintain a certain amount of commercial and legal confidentiality to secure best value in major commercial deals.

"Without that it would put the Mayor and London taxpayers in a far weaker position when these sort of contracts come round for renewal."

The Mayor's 2008 election manifesto states he would "enable Londoners to view all GLA grants, contracts and programmes worth over £1,000 on the Mayor's website."

CBS claimed it struggled because a £50m scheme to install digital panels on escalators suffered delays owing to LU planning problems. It was also hit by the advertising downturn.

The contract is the largest of its kind in the world and was keenly fought over. It covers 33,000 poster sites at 275 station and 88,000 panels on trains.

Graeme Craig, Commercial Development Director at TfL, said: "Following discussions with CBS Outdoor we have reached a comprehensive agreement that sees CBS Outdoor continue to run the commercial advertising concession for London Underground.

"We are delighted to be maintaining our long and successful relationship with CBS Outdoor."