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Lessons from Cancelling the InterCity West Coast Franchise Competition

Lessons from Cancelling the InterCity West Coast Franchise Competition
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
Total Pages: 52
Release: 2012-12-07
Genre: Business & Economics
ISBN: 9780102980523

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The Department for Transport competition to let the Intercity West Coast franchise lacked management oversight and the governance of the project was confused, according to the National Audit Office. The full cost to the taxpayer is unknown but likely to be significant, with at least £1.9 million in staff and adviser costs, £2.7 million in legal costs and £4.3 million on external advisers for the reviews that it has commissioned. The refranchising process was a major endeavour, with considerable complexity and uncertainty. The objectives of the Department for Transport were insufficiently clear during the franchise competition. The Department delayed the issuing of the invitation to tender by eight months because it had not finalized how it would implement recent policy changes. There was also confusion among Department staff about some aspects of the process. The subordinated loan facility was a particular area of confusion. A subordinated loan is capital provided by the parent company which guarantees franchise payments will be made to the Department should the franchisee get less passenger revenue than expected. However, there were significant errors in the tool the Department used to calculate how big a loan it would require bidders to have. The competition lacked strong project management and there was no clear route for the project team to get approval for major issues. No one person oversaw the whole process or could see patterns of emerging problems.


Cancellation of the InterCity West Coast Franchise Competition

Cancellation of the InterCity West Coast Franchise Competition
Author: Great Britain: Parliament: House of Commons: Transport Committee
Publisher: The Stationery Office
Total Pages: 64
Release: 2013-01-31
Genre: Business & Economics
ISBN: 9780215053190

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Embarking on an ambitious, perhaps unachievable, reform of rail franchising, in haste, on the UK's most complex piece of railway was irresponsible. Many of the problems with the franchise competition, detailed in the Laidlaw report, reflect very badly on civil servants at the DfT. However, ministers approved a complex - perhaps unworkable - franchising policy at the same time as overseeing major cuts to the Department's resources. This was a recipe for failure which the DfT must learn from urgently. While the Department has already published a response to the Laidlaw report which Mr Laidlaw described as 'very encouraging', and has initiated a review of franchise MPs warn that a number of matters remain to be adequately resolved. The Committee calls on the Secretary of State and the Department for Transport to: explain why ministers and senior officials were misled about how subordinated loan facilities were calculated, if necessary after disciplinary proceedings against staff have concluded; complete a full email capture and get to the bottom of whether or not any officials manipulated the outcome of the competition to ensure First Group were awarded the contracts; provide a comprehensive breakdown of costs arising from the cancellation of the West Coast Mainline franchise competition. The Committee also wants to establish what lessons current and future ministers must learn from this episode


Department for Transport

Department for Transport
Author: Great Britain: Parliament: House of Commons: Committee of Public Accounts
Publisher: The Stationery Office
Total Pages: 48
Release: 2013-02-26
Genre: Business & Economics
ISBN: 9780215054395

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The Department for Transport's complete lack of common sense in the way it ran the West Coast franchise competition has landed the taxpayer with a bill of £50 million at the very least. If you factor in the cost of delays to investment on the line, and the potential knock-on effect on other franchise competitions, then the final cost to the taxpayer will be very much larger. The Department made fundamental errors in calculating the level of risk capital it would require bidders to put on the table and it did not demand appropriate levels of capital from both bidders. Faced with the possibility of legal challenge, it cancelled the competition. The Department failed to learn from mistakes made in previous projects. Recommendations made in the Committee's report 'The failure of Metronet' (HC 390, session 2009-10, ISBN 9780215544216) to prevent a lack of oversight and information were clearly not applied in this competition. Cuts in staffing and in consultancy budgets contributed to a lack of key skills. There was no single person responsible from beginning to end and, therefore, no one who had to live with the consequences of bad policy decisions. For three months, there was no single person in charge at all. Not only that, there was no senior civil servant in the team responsible for the work, despite the critical importance of this multi-billion pound franchise. Given that the Department got it so wrong over this competition, there is concern over how properly it will handle future projects, including HS2 and Thameslink


HC 1140 - Local Transport Expenditure: Who Decides?

HC 1140 - Local Transport Expenditure: Who Decides?
Author: Great Britain: Parliament: House of Commons: Transport Committee
Publisher: The Stationery Office
Total Pages: 40
Release: 2014-06-03
Genre: Business & Economics
ISBN: 0215072863

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Transport infrastructure in some parts of the UK may get left behind under the new system to be used from next year (2015) to share out central government money for local major transport schemes. The Government has again changed the system for distributing money to local areas for major transport projects, with much more emphasis now on competition for funding. This will not necessarily help regions get a fairer share of transport funding and could make the situation worse. The Government's focus on using competition to bring in private sector funding for projects could disadvantage the regions, where there tends to be less private sector money available compared with London. Those Local Enterprise Partnerships (LEPs) which are well organised and resourced will have an advantage in bidding for funds. Other areas may lose out as a result. In addition, with greater reliance on competitive bidding for funds, there will see more money wasted on failed bids. Strategically significant schemes such as access to ports must not get overlooked. The changes are set against a backdrop where far less money is spent on transport projects outside London than in the capital. Transport infrastructure spending is £2,500 per head in London compared with £5 per head in the north east. This inequality must change. The Committee calls for the new funding arrangements to be reviewed by the end of the next Parliament to ensure that they are efficient and effective in providing funding for the most urgent transport priorities.


HC 850 - Better Roads: Improving England's Strategic Network

HC 850 - Better Roads: Improving England's Strategic Network
Author: Great Britain: Parliament: House of Commons: Transport Committee
Publisher: The Stationery Office
Total Pages: 48
Release: 2014-05-07
Genre: Business & Economics
ISBN: 0215071883

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The Strategic Road Network (SRN) is a crucial part of the national transport system. The Department for Transport predicts traffic levels on the SRN to rise by 46% by 2040. The network has suffered from inconsistent funding and changes in Government policy over the past two decades. Road users deserve clarity on how the network can be part of a high quality integrated transport system. If the traffic forecasts are correct, the Government will need to increase investment in the road network substantially during the next decade. This requires new long-term funding streams. A consensus would be required to introduce any road user charging scheme across the SRN and the many issues involved would have to be resolved. The DfT must develop a transparent system of road planning as part of a wider national transport strategy. The DfT's National Transport Model (NTM) should be subject to wider scrutiny and DfT should commission integrated passenger and freight plans for strategic transport routes, rather than looking at one mode of transport in isolation. The Committee is not convinced by the case for establishing the Highways Agency as a Government owned company (GoCo). The benefits seem achievable through better management of the current agency and its relationship with the DfT. If the Highways Agency becomes a GoCo, it will need a strong system of scrutiny. The current proposals for this are inadequate. The new scrutiny body will need the power of a full regulatory authority.


HC 1135 - National Policy Statement on National Networks

HC 1135 - National Policy Statement on National Networks
Author: Great Britain: Parliament: House of Commons: Transport Committee
Publisher: The Stationery Office
Total Pages: 32
Release: 2014-05-07
Genre: Business & Economics
ISBN: 0215071875

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The National Policy Statement on National Networks, published in draft for consultation (ISBN 9780108560071), sets out the policy against which decisions will be made on applications for development consent for nationally significant infrastructure projects on the strategic road and rail networks. The Committee has a number of detailed recommendations to improve the draft. The NPS should specify more types of transport scheme which the Government thinks are needed, such as enhancements to the rail network to promote east-west connectivity; better road and rail connections to ports and airports and to parts of the country which are currently not well served by those networks; and schemes to promote regional economic development. Criticisms of the DfT's road and rail demand forecasts should be addressed. Estimates of the impact on UK carbon emissions of building more road infrastructure are needed. Adverse impacts of major transport schemes on localities should be set out. The NPS should make explicit reference to the desirability of connecting HS2 to the classic rail network. Promoters of roads schemes must look to improve road safety (including for cyclists and pedestrians). The Government is seeking to accommodate increasing demand for roads by building more infrastructure rather than seeking to manage demand. Investment in the road network will require new funding streams, a challenge that must be addressed. However, a consensus would be required to introduce any road user charging scheme across the strategic road network as an alternative to road taxation.


House of Commons - Transport Committee: Access to Ports - HC 266

House of Commons - Transport Committee: Access to Ports - HC 266
Author: Great Britain: Parliament: House of Commons: Transport Committee
Publisher: The Stationery Office
Total Pages: 102
Release: 2013-11-26
Genre: Business & Economics
ISBN: 9780215064646

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In this report looking at policy for improving road and rail access to ports, the Transport Committee urges the Department for Transport (DfT) to become a keener advocate for UK ports. The Government should contribute to significant improvements to strategic networks which also deliver wider benefits - rather than simply expect port operators to pick up the entire bill for measures required to mitigate increased traffic due to port expansion. If the Government chooses to apply European Commission state aid rules in this area more strictly than other EU countries it should explain why it does so. Policy in this area should be applied consistently across the country. While some ports have contributed towards transport schemes to improve access, others have not and the differences in approach have not been explained or justified. Ports should also continue to contribute to local transport infrastructure improvements, following discussions with relevant local bodies. The Department for Transport should demonstrate whether port master plans have had any impact, highlighting good examples of such plans and of how they have influenced decision makers. Finally, the Government should devise a more effective successor to the Waterborne Freight Grant, to stimulate coastal shipping.


House of Commons - Transport Committee: Local Authority Parking Enforcement - HC 118

House of Commons - Transport Committee: Local Authority Parking Enforcement - HC 118
Author: Great Britain: Parliament: House of Commons: Transport Committee
Publisher: The Stationery Office
Total Pages: 170
Release: 2013-10-23
Genre: Business & Economics
ISBN: 9780215062864

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The use of parking charges and fines specifically to raise revenue by local authorities is neither acceptable nor legal. Annual parking accounts would allow the public to see how much local revenue is derived from the enforcement of fines, and what proportion of this come from on or off street parking charges. It's right that parking charges be determined locally, but hard to justify fines that substantially exceed penalties for more serious offences like speeding. DfT's statutory guidance should stipulate that local authorities implement a 'grace period' of 5 minutes after the expiry of paid-for time on any paid parking before enforcement officers issue a Penalty Charge Notice (PCN). The Guidance should be clarified and updated, particularly in relation to rules for loading and unloading. A 25% penalty charge discount should also be introduced for motorists who pay within 7 days of losing any appeal to a parking tribunal. Local authorities currently offer a 50% discount if motorists pay their penalty charge within 14 days, but this is not available to motorists who appeal to a tribunal. Motorists should also not have to appeal against PCNs where tribunal adjudicators have repeatedly identified a problem such as poor signage. Adjudicators should also be given powers to allow appeals where local authorities fail to follow statutory guidance concerning the use cameras. While businesses cannot be completely exempt from parking restrictions, local authorities must also ensure that the need to restrict parking and manage congestion does not stifle the ability of businesses to trade and help grow the economy


House of Commons - Transport Committee: Flight Time Limitations: Follow Up - HC 641

House of Commons - Transport Committee: Flight Time Limitations: Follow Up - HC 641
Author: Great Britain: Parliament: House of Commons: Transport Committee
Publisher: The Stationery Office
Total Pages: 56
Release: 2013-09-11
Genre: Business & Economics
ISBN: 9780215062246

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Flight time limitations regulate the number of hours that pilots and crew work in order to prevent fatigue. Fatigue contributes 15-20% of fatal aviation incidents caused by human error. In July 2013, Member States of the European Union voted strongly in support of a draft proposal on flight time limitations by the European Commission. Overall, the Commission's draft regulation represents an improvement but concerns remain. Particularly about the apparent reluctance of the Commission when developing these regulations to set a lower limit for the flight duty period at night in accordance with the scientific evidence on this matter. It is disappointing that the UK Government has not pressed for a lower limit. It is also disappointing that a consensus has not been reached on the draft regulations with crew and pilot representatives. It is recommended that the European Scrutiny Committee requests the UK Government to press the Commission to ensure an effective monitoring regime is put in place to examine whether the 11 hour limit is at least as safe as the current regime and that they request the European Commission provide an assessment of the regulation two years after its implementation. The Committee also concluded that: the potential under-reporting of pilot fatigue must be properly recognised if it is to be effectively tackled; information should be regularly published on the use of Commander's discretion to extend their crew's flight duty period if unforeseen circumstances arise; and scientists must have a more central role in the development and assessment of flight time limitation proposals