PAC unconvinced by DfT grip on project costs

Meg Hillier taking no prisoners at Monday's Public Accounts Committee hearing into TramTrain…

Chair: I have to say that whatever you take from Mr Carne’s comments about the regulator—we as a Committee have been critical about the role of the regulator in the past—it is staggering that the Department did not challenge the costs more. We cannot quite believe that that happened.

Bernadette Kelly: Without question, we would provide much greater challenge and seek far greater assurance on these project costs now than we may have done back in 2012.

Chair: Can I make you an offer, Ms Kelly? The next time you are looking at a project, this Committee would love to look at it prior to the point at which it is agreed, just to have a good rummage through the numbers. I would be very happy to do that.

Bernadette Kelly: I hope that what you would see now is that there is a really rigorous process. If it would be helpful to the Committee to provide some further information on exactly the process that Mr Carne and I have outlined, we would be delighted to do so.

Chair: We would be interested to see that. As I said, the offer stands: if you have a future project that you would like us to look through in detail before it spends taxpayers’ money, we would be very happy to do that. Thank you very much.

Ouch!

The Case of the Missing Question

This from our man at 221b Baker Street...

Mornin' Holmes, have you seen the Public Accounts Committee report on the Intercity West Coast franchise debacle? It makes most interesting reading.

Indeed I have, Watson, and it is a tribute to the forensic abilities of the Committee's Chairwoman Margaret Hodge, second only in my estimation of the fairer sex to Eirene Adler. And you will have noticed in the transcript of the evidence session with the DfT Permanent Secretary and his Director General the significance of the question as to why the Department's Contract Awards Committee thought it necessary to impose a Subordinated Loan Facility on Virgin, where the calculations indicated that none was required, whilst at the same time reducing the sizeable SLF for First Group? 

But Holmes, I didn't see that question in the transcript.

That, Watson, is the significance! 

DfT - Uniformly dreadful

So. The Public Accounts Committee has published its report into the cancellation of the InterCity West Coast franchise competition.

The accompanying press release is littered with phrases like "complete lack of common sense", "fundamental errors" "littered with basic errors", "failed to learn from previous disasters", "failed to heed advice from its lawyers", "failed to respond appropriately to early warning signs", "did not have proper oversight of the project" and comments that "the project showed a lack of leadership".

The release continues: "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...".

"We are astonished that the Permanent Secretary did not oversee the project because he was told he could not see all the information which might have enabled him to challenge the processes, although it was one of the most important tasks for which the department is responsible."

"Given that the Department got it so wrong over this competition, we must feel concern over how properly it will handle future projects, including HS2 and Thameslink. The Department needs to get its house in order and put basic principles and practices at the heart of what it does, with an appropriately qualified and senior person in charge of the project throughout and an accessible leadership team ready and willing to hear and act on warning signs."

Quite so.

Of course it is all too easy to snipe from the sidelines.

Therefore, Eye is determined to make a constructive contribution to helping DfT "get its house in order".

On page 42 of the PAC report is this telling gem:

£230,000 on uniforms that will never be worn!!!

Eye insists that all officials at the Department (as well as Villiers, Hammond and Greening) are required to wear these totems of profligacy when in Whitehall and on or about the railway.

Perhaps that might engender a greater sense of team spirit and visible accountability?

UPDATE: This from Alias Schmidt & Jones...

Hey, are there any picture of these uniforms? 

And are they now for sale somewhere?

 If so, where can I get one? 

If not why not?

Eye understands that they are in secure storage and ready to be used as required. Apparently there are sufficient for any large-ish size TOC!

 

Chair of PAC on HS1

This from the Public Accounts Committee...

NATIONAL AUDIT OFFICE: The completion and sale of High Speed 1

A statement from The Rt Hon Margaret Hodge MP, Chair of the Committee of Public Accounts:

I am yet to be convinced that HS1 will prove to be value for money. Yet again we hear that value for money will depend on uncertain benefits which have not been quantified. We will want the department to do all it can to realise the benefits and turn this sorry story round.

Compared to the staggering mismanagement of the West Coast Mainline upgrade, the department did relatively well with the construction of HS1. But that is damning with very faint praise indeed. It’s a sad state of affairs when it comes as no surprise that HS1 was based on dodgy assumptions and bad planning.

Don't be so coy Margaret, tell us what you really think!

A busy week for the Public Accounts Committee...

This from the PAC page on Parliament.uk...



Watchable live and on-line at www.parliament.uk

And all, unbelievably, without the benefit of the Alternative Vote!