HS2

26.11.15

DfT to fundamentally review role of ORR

Transport secretary Patrick McLoughlin has confirmed that there will be a “fundamental review” of the role and responsibilities of the Office of Rail and Road (ORR), following the publication of the Bowe Review into the planning of Network Rail's enhancements CP5 programme. 

Dame Colette’s review was published yesterday, alongside the long-awaited Hendy Review into CP5 funding, and stated that that too much responsibility was attributed to ORR, whose role “was unclear”. 

Last week the Public Accounts Committee (PAC) also called for a review of the regulator after suggesting it might not be fit for purpose to “robustly scrutinise” Network Rail’s plans and cost estimates. 

146 ORRlogomed

The Bowe Review concluded that there is no one overarching cause which explains the cost escalation and delays to projects and programmes in CP5. Instead, a number of issues have combined to require this programme to be reviewed and elements to be replanned. These include: 

  • Planning processes, which had been thought to have worked successfully at the previous control period, have been shown to be inadequate in the face of the scale and complexity of the CP5 programme – including, very importantly, proposed electrification works on a scale not attempted before in the UK; 
  • The definition of organisational responsibilities between the Department, Network Rail and the ORR. These were unclear, lacking the relentless focus and clarity required for the design and execution of a major infrastructure programme; 
  • The fact that the overall plans encompassed a complex portfolio of schemes, subject to poor scope definition from the outset and ongoing ‘scope creep’ which led to cost increases; 
  • Issues of effective internal programme and portfolio management, notably at Network Rail, where a combination of changing internal structures and responsibilities obscured lines of accountability for efficiency and delivery; and 
  • When it came to delivery, early costing errors, unanticipated interdependencies, lower than expected productivity and the failure to ensure agreed front end scope definition have also contributed. 

Dame Colette added that there needs to be a clarification of the organisational responsibilities of the three organisations, particularly in light of the reclassification of Network Rail, which has changed the context significantly, and ensuring that the necessary capabilities are in place. 

She also want to ensuring “significantly more robust” programme governance and oversight of the planning process, with clarity around schemes at all stages of development, and considering whether bespoke arrangements for major and complex elements of the enhancements programme should be more widely used.

Additionally, there needs to be a much stronger focus on deliverability, including the implications throughout for the supply chain, and the availability of people with the right skills – in all three organisations. 

The ORR said that with the changes to Network Rail’s ownership and finances since it became a public sector company, ORR agrees that a review of its own role in major projects is appropriate.

Responding to the recommendations, McLoughlin said: “As a result of your report, the role and responsibilities of ORR will be fundamentally reviewed. It is important that the regulatory regime is supportive of, and responsive to, the challenges of planning and managing complex infrastructure projects that, by their very nature evolve and change over time and often span more than one control period.” 

He said the review will have particular regard to: 

  • the arrangements for securing value for money from investment in the railway, both from taxpayers and other sources
  • the arrangements for securing the protection of the interests of users
  • the importance of an environment that supports private sector investment and involvement in the rail sector, and
  • the changed context for investment in the railway following the reclassification of Network Rail to the public sector. 

McLoughlin added that the proposed review will be carried out in parallel with Nicola Shaw's report, due in 2016, so that any changes can be aligned with her conclusions. 

The transport secretary also noted that the DfT is working with Network Rail to strengthen the governance and day-to-day management of the process for planning and overseeing rail enhancements, “providing clearer accountability for associated costs and project management”. 

Additionally, in the future, all projects will be subject to a clear change control process. 

“These new arrangements will be underpinned by improved governance arrangements between the Department and Network Rail,” he said. “These measures will reset the formal framework and will be underpinned by a new Memorandum of Understanding which I will publish next March.” 

Comments

Manchester Mike   26/11/2015 at 14:45

Shouldn't someone in power fundamentally review the role of DfT?

Lutz   29/11/2015 at 17:57

On the whole the Bowe Report makes a number of sound recommendations, though there is a sense that it has not completely grasped the considerations around continuous delivery of major, long-incubation, projects and the funding models that they would require.

Add your comment

related

rail technology magazine tv

more videos >

latest rail news

HS2 Ltd: Five tech firms join Innovation Accelerator initiative

11/09/2020HS2 Ltd: Five tech firms join Innovation Accelerator initiative

HS2 Ltd have announced today (11 Sept) the first five revolutionary tech firms that will join HS2 Ltd’s Innovation Accelerator programme. ... more >
Network Rail publish Decarbonisation Plan

11/09/2020Network Rail publish Decarbonisation Plan

Network Rail have released their interim Traction Decarbonisation Network Strategy, illustrating its preliminary recommendations for decarbonisin... more >
Trains kept moving by AWC despite damaged overhead wires

11/09/2020Trains kept moving by AWC despite damaged overhead wires

Avanti West Coast have taken an unlikely option to allow their timetable to run, without delays, despite damaged overhead wires. The operato... more >

last word

Encouraging youngsters to be safe on the railway

Encouraging youngsters to be safe on the railway

This summer, Arriva Group's CrossCountry and the Scout Association joined to launch a new partnership to promote rail safety among young people. Chris Leech MBE, business community manager at the... more > more last word articles >

'the sleepers' daily blog

On the right track, Sulzer is awarded RISAS accreditation for Nottingham Service Centre

29/06/2020On the right track, Sulzer is awarded RISAS accreditation for Nottingham Service Centre

Following an independent audit, Sulzer’s Nottingham Service Centre has been accepted as part of the rail industry supplier approval scheme (RISAS). The accreditation reinforces the high-quality standards that are maintained by Sulzer’s network of independent repair facilities across the UK and further afield in its global network. ... more >
read more blog posts from 'the sleeper' >

comment

The challenge of completing Crossrail

05/07/2019The challenge of completing Crossrail

With a new plan now in place to deliver Crossrail, Hedley Ayres, National Audit Office manager, major projects and programmes, takes a look at ho... more >
Preparing the industry to deliver trains for the future

04/07/2019Preparing the industry to deliver trains for the future

The move to decarbonise the rail network involves shifting to cleaner modes of traction by 2050. David Clarke, technical director at the Railway ... more >
Sunshine future beckons for South Wales Railways, says 10:10 Climate Action’s Leo Murray

02/07/2019Sunshine future beckons for South Wales Railways, says 10:10 Climate Action’s Leo Murray

Smart electrification is the way to boost clean energy resources, argues Leo Murray, director at 10:10 Climate Action. Contractors are clear... more >
Ambition doesn’t have to be expensive, says Midland Connect's Maria Machancoses

02/07/2019Ambition doesn’t have to be expensive, says Midland Connect's Maria Machancoses

The TCR Midlands conference is only days away and tickets are going fast for the sector event of the year at the Vox Conference Centre in Birming... more >

rail industry focus

View all News

interviews

Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

24/06/2019Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

Andrew Haines, the Chief Executive of Network Rail, has told the Today programme on Radio 4's BBC’s flagship news programme that he wo... more >