OPRAF is dead. Welcome to ORPS!

This from the Department for Transport...

Written statement to Parliament

Outlines recommendations from the recent rail review.
 
The Rt Hon Patrick McLoughlin MP

As recommended by Richard Brown in his review into franchising and as part of June 2013’s national infrastructure plan Investing in Britain’s Future, my department undertook to review government rail functions in order to identify what actions were required to deliver those functions in the most effective and efficient way. The review has now submitted its recommendations to me. I have agreed its recommendations and implementation will begin shortly.

The review recognised that much has already been achieved since the department’s rail functions were brought together into a single rail group in January 2013. A clear, professional franchise programme is underway, implementing Richard Brown’s review of franchising, along with the government’s ambitious rail investment programme. Building on this progress, the review recommends further developing the department’s rail functions as a new rail executive.

Creation of the rail executive will support the drive to strengthen our focus on passengers; build an enhanced culture of commercial expertise and innovation; and ensure greater coordination of improvements to track and trains. A single team will manage the interdependencies between rolling stock, track, stations, freight and passenger services; and between existing services and HS2. It will also develop an effective framework agreement for Network Rail, for September 2014, when it will be classified as public sector. A new approach to recruitment, reward and career development for commercial rail skills will allow the rail executive to increase capability at all levels and bolster commercial experience in the management team. This will reduce the department’s dependency upon consultants and increase its ability to negotiate the best deal for passengers and the taxpayer.

The review recommended that there should be a clear focus on rail passenger services within the rail executive. This will be provided by a new Office of Rail Passenger Services, forming part of the rail executive, with responsibilities including delivery of the franchise programme and the management of existing franchises. It will be led by an externally recruited managing director and supported by non-executive board members.

The review has also recommended we consider a longer term option of a new, more arms-length body with responsibility for rail delivery functions. The creation of the rail executive provides a strong foundation for such future evolution and the government will consider moving to a more arms-length body in 2016.

ENDS

UPDATE: This from Virginia Waters...

Compare and contrast this from Robert Goodwill...

Minister Goodwill states that the Secy of State will be able to veto excessive salaries and bonuses.
— Transport Committee (@CommonsTrans) February 24, 2014

With this from today's statement by the Secretary of State...

"A new approach to recruitment, reward and career development for commercial rail skills will allow the rail executive to increase capability at all levels and bolster commercial experience in the management team." 
 
Good to see everyone is as joined up as ever.

Update: This from Steve Strong...

This is what the new structure will look like according to the Organisational Review of Department for Transport Rail Functions...

 So now you know.

Brown joins DfT Board

This from the DfT...

Richard Brown appointed to the Department for Transport Board

Richard Brown CBE has been appointed as a Non-Executive Member of the Department for Transport Board by Transport Secretary, Patrick McLoughlin.

He joins lead Non-Executive Director Sam Laidlaw and other Non-Executives Ed Smith, Alan Cook, Sally Davis, Mary Reilly and John Kirkland.  

Good news indeed.

And just months after completing his independent review that validated franchising!

New Franchising Policy - Advisory Panel

This from Claude Bottom... 

Is the Fact Compiler losing his touch?

Amongst yesterday's flurry of observations about the New Franchising Policy, not a word on the Rail Franchise Advisory Panel chaired by no less a figure than Richard Brown.

The same Richard Brown who is also chairman of Eurostar, which by happy coincidence is 60% state owned!

Good to see that the new Advisory Panel can offer first hand experience of integrated and nationalised railways, even if they are those of France and Belgium.

Brown Review - Radical evolution?

Some thoughts on the Brown Review from Eye's man in the Hot Seat..

Brown clearly identifies the key elements that matter, many of which are neither sexy nor political, but which have the capacity to make a significant difference. Eg staff investment and ensuring that all franchise employees are committed to the long-term future of the companies they work for, etc...

The proposals on franchise length with potential extensions for good work are sensible

Chapter 6 is very good and perhaps for the first time gives a clear answer to the 'Wolmar Question' ("What are franchises for?").

Therefore, in summary, an evolution, but a fairly big one and contains solutions as radical as anything we have seen since franchises started.

Overall - 9 out of 10!

TUC exposes reward for Brown Review

This from the TUC's Action for Rail campaign...

Brown Review into railways a missed opportunity, says the TUC

Lord Brown’s Review into rail franchising, published today (Thursday), has missed the opportunity to improve the UK’s rail system, says the TUC.

Lord Brown concludes in his report that rail franchising is ‘not broken’ but the TUC has expressed disappointment that he appears to have joined the government in turning a blind eye to the problems of rail privatisation.
 
Remember, you saw Richard Brown elevated to the peerage here first!

January - a time to look forward, not back!

So. The Transport Select Committee has opined on the future of the railway.

Please read our Legislators' thoughts - Here.

Meanwhile we look forward to the 8th January when NR publishes its business plan (HLOS in old money).

And on 10th January we can apparently anticipate a Ministerial Statement on the Brown Review.

In all this excitement there is only one message that the industry needs to put across:

"Move the wheel closer to the rail and structure for the customer!", whether passenger or freight (thank you Sir Robert).

That is all.

Brown Review - update

Interesting.

Sources suggesting that Richard Brown was appointed directly by Patrick McLoughlin rather than being selected by Marsham Street mandarins.

Clearly, in Derbyshire at least, blood is thicker than water.

Indeed there is a growing view that Brown may even be prepared to rock the boat with his report.

We shall see.

Meanwhile those interested in making constructive contributions to the review may do so via: Brown.Review@dft.gsi.gov.uk

Alternatively, you can post correspondence to:

The Brown Review
Hercules House
Hercules Road
Lambeth
London
SE1 7DU

Eye readers will be reassured to see that the SE1 address means contributions are unlikely to be opened by purveyors of the failed franchising orthodoxy.

UPDATE: This from The Spirit of Dark and Lonely Water...

Mr Brown at Hercules House?

This used to be the home of the late lamented Central Office of Information – the body that once delivered government advice with less of nudge and more of a supportive hand on the shoulder, whilst the other was firmly clamped on the nads.

Meanwhile I greatly enjoyed Gwyn Topham's story in today’s Grauniad, which accurately reflects what the RDG 'privately told the man shaping the future of franchising'.

Does Eye have any idea qui bono?

Brown Review - Same old, same old. Official

Good news from today's RDG Second Industry Forum!

According to the man himself, the Richard Brown Review aims to deliver a "minimum fix" to ensure that the three, currently stalled, franchises can be got out the door as quickly as possible, with a vague promise of further reforms down the line...

So those hoping that the Brown Review might actually explore a range of options to ensure that the provision of passenger services deliver actual Value for Money, to both tax and fare payer, are doomed to disappointment.

No matter.

In happier news Richard confirmed today that he had already asked the views of half the people he wanted to consult as part of his Review.

Judging from the blank looks amongst the great and good assembled today at the appropriately named Pullman Hotel on the Euston Road this must be a very select group indeed!

No doubt as part of its commitment to transparency the DfT will be publishing these exalted names ere long?

Brown Review - Partnership is key

Eye understands that Richard Brown is busy assembling a team to work on his Review.

According to sources they are likely to be absolutely first class.

Is this perchance now the Review of Last Resort?

UPDATE: This from Our Man at 222 Marylebone Road...

So Richard Brown and DOR are recruiting from the same pool of ex-British Rail retreads.  

Will their gangmaster turn a blind eye to possible moonlighting in this overheating market? 

UPDATE: This from Sir Humphrey Beeching 

Allow me to commend my former DfT colleagues on their Value for Money approach.

I quote… 

As for longer franchises, the best case for them
is if they are to become the vehicles for
investment - not just rolling stock, but the
infrastructure too. Chiltern’s 20-year franchise is
a great example. Without investment the case for
longer franchises is a lot thinner. 

There is also a case for more flexible contracts
for the commercial railway – allowing TOCs to
tailor the timetable more closely with market
requirements. Allowing commercial TOCs to
take the revenue risk is also sensible. Allowing
social TOCs to do so is not so sensible: there the
emphasis should be on service quality and cost
effective delivery 

That’s your report written then Richard. Shall we perhaps retire for luncheon?

UPDATE: This, perhaps surprisingly, from the late Simone Mirman...

I 'ave noticed that the leather petit chapeau noir has been seen across Le Town a domain.

From the oh-so chic ABBey all the way to les tres unfashionable TERminus.

C'est magnifique! Mais ce n'est pas la gare. Non?

UPDATE: This from Aristotle...

If you keep asking the same people the same question do not surprised when you keep getting the same wrong answer.

Is there nobody left from OPRAF days who can approach the question of Franchising from a different direction?

TSC - A voice crying in the wilderness...

This from a Mr Tony Miles...

I found this Transport Select Committee report from 2009

It makes interesting reading in the light of recent events…

Highlights in the section headed 'Rail franchising—on track?' include:

3. In our 2006 report on passenger rail franchising, we concluded that the franchising system had failed to fulfil its objectives, and that it was nothing short of a "policy muddle". We were concerned that "the drive to extract premiums from some parts of the network will result in further above-inflation fare increases and a deterioration in customer service, investment and innovation". We argued that the Government needed to "conduct a strategic review of the long term needs of rail passengers, and an honest appraisal of the structure best suited to fulfil these needs over the next several decades". We urged the Government to ensure that this review be included in the 2007 Rail White Paper. The Government failed to do so, telling us that the system was "delivering" both good services and value for money.

7. As we said three years ago, the current system of rail franchising is a muddle.

12. As we have noted in the past, the process for awarding franchises along with the relative absence of significant risks for franchise holders tend to fuel very optimisitc bids.

19. The Government has argued that the difficulty of predicting revenue over 15 or 20 years militates against longer franchises,

21. The needs of passengers have not always been properly catered for within rail franchising contracts. The Government must ensure that franchises are more passenger-focused, and that commitments within existing franchise contracts are also enforced.

Clearly all of this was taken on board and informed the West Coast franchising process…

Eye commends this report to Richard Brown and hopes it will help inform his Review?

ATOC and RDG members have their work cut out

This from AE Watson...

I note that the work to be undertaken by RDG on franchising is to be distinct from that done by ATOC.

Looks like lucky old Hurricane Higgins and Planner Plummer will at least have their weekends free...

Richard Brown Review - Remit published

This from the Department for Transport...

Text of letter from the Secretary of State to Richard Brown
 
15 Oct 2012
 
Following my decision to cancel the competition for the InterCity West Coast franchise, I am asking you to lead an independent Review into the Department’s wider rail franchising programme.
 
I would like your Review to look in detail at the implications for the remainder of the rail franchising programme, in particular, whether changes are needed to the way risk is assessed and to the bidding and evaluation processes, and at how to get the other franchise competitions back on track as soon as possible
 
Terms of Reference of the Review are enclosed.
 
Decisions on how to run the Review and who to involve in it are for you as leader of the Review. You may want to draw on independent advice from outside the Department.
 
I ask that you report your findings to me by the end of December 2012.
 
In addition, an independent Inquiry, into the lessons learned from InterCity West Coast, is being undertaken by Centrica Chief Executive Sam Laidlaw. I have asked Sam Laidlaw to provide initial findings before the end of October.
 
Terms of Reference: Brown Review of the Rail Franchising Programme
 
1. The review should consider the implications for the remainder of the rail franchising programme of the position reached on the InterCity West Coast competition.
 
2.This review should take careful account of the points and lessons learned identified in the Laidlaw Inquiry and should also consider:

• How to structure risk transfer between the Department and rail franchisees in order to create optimum incentives in the long-term interests of passengers and taxpayers, and the ability to adapt to changing circumstances.
• How to structure the bidding and evaluation processes to ensure a robust and fair competition, including evaluation of the risk presented by different bids as a basis for decisions that take these risks appropriately into account.
• The timing of the remainder of the franchising programme, so that it can be resumed on a robust basis as soon as possible.
• How the Department can take the learning points from the Laidlaw Inquiry and facilitate a clear and proportionate framework for franchising which balances Government's administrative and commercial judgements with the need for the market to have predictability, transparency and a proportionate application of legal rules.

3. The review should make recommendations on the basis of its findings.
 
4. The Terms of Reference may be refined further following the publication of the Laidlaw Inquiry. The review shall be completed by 31 December 2012 and published thereafter.
 
5. The review will be led by Richard Brown, Chairman, Eurostar.
 
6. The review team should include external expertise as well as expertise from within Whitehall, and some cross-membership as appropriate with the review of lessons learned.

ENDS

Eye prefers Sir Charles Trevelyan's proposed remit published on Eye last Friday.

Richard Brown's remit - some thoughts

This from Sir Charles Trevelyan... 

Given the lack of a published remit for Richard Brown might I volunteer the following?

Eye readers will no doubt have their own thoughts which they may wish to add? 

Brown Review Remit

Review the rail franchising programme, and determine the changes which are necessary to ensure that;

•  Government’s value for money is secured;
• The appropriate balance of financial risk transfer to the private sector is achieved;
• Innovation, efficiency, modal shift and growth is promoted;
• The competitive market for bidding is enhanced, with a particular focus on encouraging new entrants and smaller players;
• The best outcome for customers is secured 

In particular, the review should consider;

• How the bidding process can be simplified and shortened to reduce costs;
• The balance between detailed specification of outputs, efficiency, and risk
• Whether alternative models have a role in some, or all, franchise areas.  This should include, although not be limited to;

-   Operating concessions, where funders retain revenue risk and control of specified outputs

-   Devolution to local and sub national consortia – noting that this could operate on a franchise or concession basis

-   Longer operating licences for commercial franchise propositions, based around an annual fee or tariff

-   An extension of the DOR concept

In conducting the review, cognisance should be taken of the previous work on franchise reform, and in the McNulty study.  The wider rail industry should be given the opportunity to contribute its ideas to the work.

The report should be submitted to Ministers by 31 December 2012. 

Further contributions welcome.

UPDATE: This forthright suggestion from Sinoda...

If soon to be Baron Brown of the Broom Cupboard is short of suggestions, perhaps the question oft-posed by 'The World's Greatest Living Transport Correspondant' could be addressed as follows?

"What is franchising for?"

Better known as the 'Wolmar Question'.

HS2 to be fast-tracked - DfT hopes for amnesia?

Call the Fact Compiler a cynic but he wonders whether the proposed fast tracking of HS2 is designed to draw a veil over recent ICWC events?

Tough luck, it won't work.

So let's be clear about what the DfT really needs to focus on now.

1. Where is the remit for Richard Brown's review?
2. Who is being asked to contribute to it.
3. How can other interested parties make submissions
4. What is the precise timeline for activities and implementation of any findings after Richard Brown reports back, allegedly on the 31st December.

As soon as possible, please.