RSG and RDG merge

This from the Rail Delivery and Rail Supply Groups...

WORKING TOGETHER – NEW PARTNERSHIP BETWEEN RAIL SUPPLY GROUP AND RAIL DELIVERY GROUP

• New partnership will give supply chain a stronger voice
• Move will ensure both groups are better joined-up
• RSG chair Gordon Wakeford will join RDG board
• RDG chief executive Paul Plummer will join RSG council
• RSG council remains independent and becomes RDG’s fourth ‘strategic board’

The Rail Supply Group (RSG) and the Rail Delivery Group (RDG) have announced a new partnership to coordinate shared objectives better and to strengthen further the industry’s voice.

The creation of a new partnership, using the resources of RDG to better support and join-up the work of the two groups, will:

• Maintain a clearer, independent voice for the rail supply chain within RDG;
• Offer closer alignment and collaboration between train operators, Network Rail and their supply chains;
• Streamline activities and avoid duplication, ensuring more efficient use of combined resources;
• Continue to jointly sponsor groups relating to technology and skills;
• Give government and stakeholders a ‘one-stop-shop’ for relations with the industry;
• Give clearer focus on unique RSG activities around exports, imports and inward investment;

The arrangement, while maintaining the RSG’s necessary independence, will see the RSG become a new strategic board of the RDG and its chair will become a full member of the RDG’s board. The partnership has also appointed Programme Director Anna Del Vecchio as an industry secondee from Amey, who will ensure that the supply chain’s independence is maintained.

Notwithstanding the super-abundance of bullet points in the release, this is good news.

Not least because the supply chain lobbied to be part of the Rail Delivery Group when the body was first set up in 2011, following the McNulty Review.

UPDATE: This from George Ramshaw Curry (via the digital ouija board)...

Meanwhile back in the world of work the sons of Martha at the Railway Industry Association continue with the hard slog of actually helping British industry to export more, innovate, become more efficient and try and understand their domestic monopoly customers etc etc. 

Not to mention actually trying do do something about Network Rail renewals falling off a financial cliff edge in the last year of CP5.

Membership of Rail Delivery Group unveiled

This from the new Rail Delivery Group...

RAIL INDUSTRY SETS UP POWERFUL NEW GROUP IN RESPONSE TO CHALLENGE FROM McNULTY

Rail industry leaders today set-up a powerful new group to lead the industry forward in delivering a higher performing, more cost effective and sustainable railway network for Britain's rail users and taxpayers.

The new Rail Delivery Group (RDG) will be made up of the most senior figures in the rail industry - the chief executives of the passenger and freight train operating owning groups and Network Rail - and will be chaired by Tim O'Toole, the chief executive of FirstGroup.

Mr O'Toole said: "This important group will form the nucleus of a new rail industry order that will provide leadership on cross-industry issues to enable delivery improvements for rail users and for the taxpayer. The train operating companies and devolved Network Rail teams will remain accountable for delivery at a local level."

Sir Roy McNulty highlighted the need for such a group in his final report: "The study is strongly of the view that the rail industry needs to be given, and needs to accept, greater responsibility for its own future. The study therefore recommends the establishment of a Rail Delivery Group (RDG) with responsibility for cross-industry leadership of a substantial programme of change."
The RDG will normally meet bi-monthly, but for the rest of the year, it will meet monthly and be joined by Sir Roy McNulty, to help the group, and the railway as a whole, take forward his recommendations.

The group will focus on industry-wide issues, including the strategy and long-term vision for the railway. It will seek to inform key choices facing governments and the development of plans in response to governments' output specifications. It will consider and implement change in response to key recommendations from McNulty, including the proposal for a rail systems agency.

The group will also steer and take ownership of the vitally important Initial Industry Plans (IIP), due to be published in September as part of the regulatory review process. The plans will detail the rail industry's view of the scope for improved efficiency and the key choices relating to the next five year funding period (CP5) from 2014 to 2019.

Note to editors

• The owning groups will be represented on the RDG by the chief executives of Abellio, Arriva, DB Schenker, Directly Operated Railways, FirstGroup, Freightliner, Go-Ahead, National Express, Stagecoach and Virgin
• The vice-chairman of the group will be David Higgins, chief executive, Network Rail
• The secretary of the group will be Graham Smith who has been a key member of Sir Roy McNulty's study team
• Paul Plummer, Network Rail's director of planning and development, has also been invited to join the group
• Government and the ORR will not be members, but will be invited to provide input to the group on key issues as will other industry bodies (such as ATOC and the Rail Freight Operators Association), suppliers (such as the Rail Industry Association) and trades unions
• The IIPs produced by the industry are intended to inform choices about the outputs which governments in England, Wales and Scotland specify as part of the periodic regulatory review process
• The full membership of the RDG is:

COMPANY NAME Abellio Anton Valk Arriva David Martin D B Schenker Alain Thauvette Directly Operated Railways Elaine Holt First Group Tim O’Toole (chair) Freightliner Peter Maybury Go-Ahead Keith Ludeman National Express Dean Finch Network Rail David Higgins (vice-chair), Paul Plummer Stagecoach Brian Souter Virgin Patrick McCall Graham Smith (secretary)

- ENDS -

Hammond to chair HLG to drive down costs

This Written Ministerial Statement from the Secretary of State...

The Secretary of State for Transport (Mr Philip Hammond):

This Government is determined to secure a sustainable and efficient railway. The Spending Review settlement has demonstrated our commitment to rail transport. The sustained financial support we have offered now needs to be matched by a relentless drive for efficiency on the part of the industry.

Sir Roy McNulty's value for money review has reached some important interim conclusions. In his interim report being published today and being made available in the Library of the House he finds that:

• the railway is costing more than it used to and more than it ought to. Greater efficiency would realise savings of £600 million - £1,000 million per annum by 2018-19 without cutting services or lowering quality;
• the key to securing these efficiencies is a cross-industry focus on reducing costs and improving value for money;
• that in turn demands closer working and alignment of incentives between train operators and Network Rail and strong leadership across the industry. Inevitably, such alignment, if it is to be effective, will involve Network Rail working more closely at a local level with Train Operators.

The most pressing need is to ensure that incentives across the industry are aligned, so that all parties strive to improve the quality of services and to provide value for money for taxpayers and passengers. Train operators are too narrowly focussed on franchise specifications (which are often over-detailed). Network Rail has concentrated on network performance and safety targets. These are important objectives. But there is no cross-industry focus on the fundamental purpose of the railway - moving people and goods efficiently across a network while securing the best long-term value for money for farepayers and taxpayers.

The second phase of the value for money study will focus on identifying opportunities for greater alignment and changes that will secure greater efficiency and better value for money. Sir Roy’s final report is due to be published in April 2011. These initial conclusions, however, are so important that it would be wrong to wait until then before starting to respond.

Today I am announcing the establishment of a high level group, which I will chair, that will examine the options for getting those responsible for track and train to work together to drive down the cost of the railway for the benefit of passengers and taxpayers, while improving the quality of services. Sir Roy McNulty’s final report will inform the group’s work.

This group will consider options for structural reform in the industry. My presumption is that, at an operational level, there are some network-wide planning and technical functions which can only be discharged by a single national body, acting as custodian of the network. That should not preclude reforms which allow route or area based alliances to be established, focussed on aligning specific track and train operations where this best serves the needs of customers.

I am clear, however, that no changes should be made which would jeopardise the impressive improvements in safety and punctuality achieved across the industry in recent years. There is a spectrum of options which could contribute to achieving a better alignment of incentives. We expect that the optimal solution will vary for different parts of the network, reflecting the diversity of our railways and differing local needs. A one-size-fits-all model is unlikely to be the right solution. I am also clear that the changes we are proposing must protect the interests of freight operators on the network.

I envisage that this work will lead to the publication of proposals for industry reform by November 2011 - as set out in my Department’s Business Plan.

In parallel with the value for money review, my Department has been consulting on possible changes to the franchising system. We have invited views on moving to longer franchises with less detailed specifications and greater incentives for operators to act efficiently and invest in the improvements passengers want. These principles have been widely welcomed and they will form part of our plans for making the railway more efficient and more responsive to passengers’ needs.

However, franchising reform needs to be coordinated with Network Rail reform: they are two sides of the same coin. We also need to co-ordinate the programme of franchise renewals to take account of major planned railway projects which will inevitably disrupt operations in certain franchises.

A number of franchises will fall due for re-tendering over the next couple of years. Because we intend, typically, to let longer franchises of at least 15 years duration it is important that the reforms we wish to make following the McNulty review, the franchise consultation and the work of the high level group are incorporated into the terms of these franchises.

I therefore propose to use a short contract, openly competed during 2011, to run and improve services in the Greater Anglia franchise whilst we carry out this work. I then expect to award a new long term franchise for the operation of services in East Anglia to commence in 2013. In 2012, I propose to award a franchise to operate Inter City West Coast until the planned opening of HS2 in 2026. Then, in late 2012, I propose to award a franchise of 15 years to operate the East Coast Main Line services.

The rest of the retendering programme for 2012 and 2013 will depend partly on decisions by my department and existing operators on the termination dates of current franchises. We also need to avoid overloading the industry by inviting too many tenders at the same time. The Trans Pennine Express franchise could contractually be extended by up to five years beyond 2012: my department is discussing a proposal for an extension with the current operator. Alternatively, this franchise could be retendered for at least 15 years, possibly in 2013 alongside the Northern franchise. The Essex Thameside franchise will also be retendered by 2013 for at least 15 years. The Greater Western franchise will be retendered in either 2013 or 2016, again for at least 15 years, upon expiry of the existing franchise agreement in accordance with its terms. In the case of Thameslink and South Eastern it is not currently appropriate to let long-term franchises, since both will be heavily affected by Thameslink work at London Bridge station. So these franchises will be retendered on a short-term interim basis as they fall due. My department will then let long-term franchises to cover the operation of Thameslink and South Eastern services, once the London Bridge Station reconstruction is complete.

- ENDS -

Impressive!

CSR - It ain't over till the fat lady sings

On Friday Wolmar delivered a powerful scoop.

He claimed that Petrol-head had signed off the DfT's reduced budget and would be joining Star Chamber, pronouncing on the departmental budgets of fellow ministers.

Interestingly the Treasury today confirmed that five Whitehall departments have reached agreement on spending cuts: Treasury, Cabinet Office, Foreign Office, Environment and Communities.

Now transport isn't on the list.

Which means one of two things.

Either the Treasury is trickling out the information - saving the 'good' transport news for later...

Or there are still some in DafT fighting a rear-guard action to preserve some semblance of a transport budget post 20th October.

Eye hopes it's the latter and encourages those fighting to preserve the shape of today's railway to redouble their efforts!

UPDATE: This just in from Wolmar...

I'd just like to make the following comment on the above:

My new book, Engines of War, will be launched with a lecture at the German Gymnasium, Pancras Road next to St Pancras, on the evening of Tuesday September 28th at a charity event in aid of the Railway Children.

Just turn up on the day at 18:00 for 18:30 or for advance tickets visit the Railway Children website or just call 01270 757596.

Frankly the Eye will be glad when he's delivered this. Please sign up, it's for a very worthy cause.

Time for slimed down Regulation?

This from Eunoia...

Served on a silver platter courtesy of BBC, Panorama and inevitably some terribly overpaid public sector workers you may wish to take a look at the Public Sector Pay database available on the BBC website.

It reveals that the 17th highest paid member of 'Ministerial Government' is none other than Dr Mike Mitchell of DafT, weighing in at a princely £202,000.

Not to be outdone however, the Office of Rail Regulation fires its opening salvo in the category of 'Non-Ministerial Government' at number 19, with only £175,000, a pitiful amount being taken home by Bill Emery, the Chief Exec.

But it doesn't stop there - ORR then churns out an impressive list of plus-£100k salaries:

at 50, £130,000 belonging to Juliet Lazarus, Director of Legal Services;
at 56, £125,000 belonging to Michael Beswick, Director of Rail Policy;
at 59, £122,500 belonging to Ian Prosser, Director of Rail Safety;
at 60, £122,500 belonging to Anna Walker, Chair (the Beeb handily notes she only need clock in 3 times a week);
at 62, £120,000 belonging to Lynda Rollason, Director of Corporate Services;
at 63, £120,000 belonging to John Roberts, Director of Rail Markets and Economics;
at 85, £115,000 belonging to Michael Lee, Director of Rail Performance and Planning;
and at 92, £110,000 goes home with Lynda Williams, Chief Inspector of Railways.

Exhausting, non?

Strangely ORR seems to rate Corporate Services more highly than Performance and Planning - which doesn't seem right.

With the rest of the industry tightening its collective belt it will be interesting to see what savings the ORR will make come 20th October...

Lookalike - Transport Policy

Good news indeed for rail user and pressure groups!

So after all the huff and puff it is evident that we are not all in this together and that ministers are no longer to think the unthinkable.


Now let's see how Cameroon and Petrol-head fair against the power of rail users.

The Big Society explained...

So.

Ministers have today written to voluntary, community and social enterprise organisations asking for their ideas on how to reduce the deficit.

Minister for Civil Society, Nick Hurd, said:

"We know that it is local people and organisations on the ground that often know what needs changing and we want to tap into their knowledge and experience to help us identify ways of doing things better and more efficiently so we can do more for less."

Indeed.

But what's this?

At almost exactly the same time that this exciting announcement was made what should drop into The Fact Compiler's inbox but the following missive from the Association of Community and Rail Partnerships:

As you are possibly already aware, our quarterly publication Train Times is currently suffering under the embargo placed upon government department publications (as it is currently funded entirely by the DfT). We are exploring ways of funding Train Times otherwise but it has become apparent that any solution will not come in time to allow us to maintain our normal schedule.

So here, in place of Train Times 59, which we would still hope to produce at some stage in the future, is Train in Between Times in which we cover the various news stories which would have appeared in TT59 had it appeared on schedule.

TiBT will not appear in printed form – this is it!

Feel free to distribute it far and wide. It’s also on our website. (Not yet it's not - but here is a link to their publications page for when it is. Ed)

Clearly there is a saving to the Department in no longer funding a hard-copy version of Train Times.

However, without Train Times, how can ACoRP effectively seek ideas from the voluntary members of Community Rail Partnerships about how to reduce costs on the railway?

No doubt the ORR and Sir Roy McNulty have already consulted all the 60+ community rail partnerships and rail promotion groups that form ACoRP's membership....

Strange train times indeed!

Tomorrow's NR annual meeting - a swan song?

Tomorrow is Network Rail's annual meeting where the company's Members will fail to hold it to account.

Eye offers the following directions and guidance to NR members in advance of the meeting.

Enjoy the moment, savour the food and drink, contribute proportionately to Iain Coucher's farewell present, avoid being seen with Tony Berkeley and don't forget to vote for everything the company proposes.

But it might be wise not to say 'see you next year'...

Meanwhile, back in the real world, don't expect huge interest in NR's CEO vacancy following these wise words from Hammond and McNulty delivered at the latest value for money workshop yesterday:

Petrol-head: "The current set-up is an enormously complex and elaborate structure to deliver pseudo market forces... The passenger is at the margin of influencing things."

McNulty: "Is the current set-up conducive to cost reduction and value for money... (it was) established without reference to these objectives. Radical change is required otherwise the end result will not be very different from what we see today."

One piece of good news.

The post McNulty world looks like affording plenty of free diary time to former NR members and directors alike.

UPDATE: This from Ithuriel...

Make your mind up Sir Roy.

You say:

"Radical change is required otherwise the end result will not be very different from what we see today."

But in the foreword to your recent scoping study you said that the choice is between "changing the way we operate or decreasing the size and the quality of the network."

Which sounds very different "from what we see today"!