Friday, 26 February 2010

The Scottish Curse - Adonis beware!

Telegrammed by our International Correspondent
A little light relief, after today's IEP excitement...

State-owned national icon No 4472 - Flying Scotsman - continues to cause heartache as engineering problems worsen.

This from the Northern Echo...

'Chris Beet, engineering and rail operations manager, said:

“Essentially, it’s a very big job and very time consuming....

"It should have been scrapped 46 years ago by British Railways”

Ain't that the truth!

As avowed by the bank managers of Messrs Alan Pegler, Sir William McAlpine BART, Pete Waterman, Dr Tony Marchington, the creditors of Flying Scotsman plc... (cont P94).

IEP announcement delayed until after election?

This from @cbuchanancubed, via Twitter...

delays on HST replacement announced till after general election

More to follow...

UPDATE: This from PA...

Plans to replace the ageing fleet of intercity trains have been postponed, Transport Secretary Lord Adonis announced.

He said the multi-billion pound, 30-year intercity express procurement programme had run into difficulties.

No shit Sherlock!

UPDATE: This morning's DfT statement in full...

In order to replace Britain's ageing fleet of Intercity 125 Trains and to invest in capacity and passenger journey improvements on the East Coast and Great Western Main Lines, the Government began the Intercity Express Programme procurement in 2007. The Programme's key objective has been to achieve value for money across the lifetime of the trains, taking account of costs right across the rail industry.

Good progress has been made, including the announcement of Agility Trains as preferred bidder in February 2009. Over the course of the procurement, however, there has been a reduction in the capacity of the debt market to support the transaction as originally envisaged, and passenger growth has also slowed. In addition the Government and Network Rail have committed to electrify the Great Western Main Line from 2016. The Government has identified appropriate adjustments to the original programme to take account of these developments. This has inevitably extended the contractual negotiations, which are not yet complete and would not be so until mid-March at the earliest.

The negotiations are for a contract of nearly 30 years, a multi-billion pound spend over the course of many Parliaments. In all the circumstances, the Government does not believe it would be appropriate to enter into this particular contract in the immediate run up to a general election. To ensure that a decision is taken at the beginning of the next Parliament on the basis of the fullest evaluation, I have today asked Sir Andrew Foster, former controller of the Audit Commission, to provide an independent assessment of the value for money of the Programme and the credibility and the value for money of any alternatives which meet the Programme's objectives. It is critical for rail passengers that the right long-term decision is made about the next generation of inter-city trains, which will have a life of 30 years or more.

The existing rolling stock dates back to the 1970s and needs to be replaced. If Sir Andrew Foster reaffirms that the Intercity Express Programme is better than the alternatives, my intention would be to proceed with the project in the next Parliament, subject to satisfactory resolution of all the contractual issues.

Sir Andrew Foster will consult Agility Trains, the Department, the relevant Train Operating Companies, the Office of Rail Regulation, Network Rail, passenger groups and the devolved Scottish and Welsh administrations.

Sir Andrew Foster will report within three months. The report and the Government's response will be published and reported to Parliament.

Andrew Adonis, Transport Secretary

UPDATE:This from Sir Humphrey Beeching...

The appointment of Sir Andrew Foster to consider value for money suggests a classic attempt to head off expensive post cancellation claims for compensation.

UPDATE: This from Reginald Slicker...

Can I be the first to congratulate the Department for standing up to the train builders and the banks over IEP.

If the train builders can't even meet DfT's quite modest targets for lighter weight trains in the IEP specification, by which I mean the 'essential' maximum weight, not the wholly reasonable 'desirable' aspiration, and the banks are unwilling to fund the project then a pause for re-consideration is richly justified.

I must congratulate Lord Adonis on this wise decision which is a rebuff to those critics of DfT's new train procurement activities.

Yours etc.

R. Slicker

UPDATE: This just in from Captain Deltic...

According to this morning's statement from Lord Adonis: "The existing rolling stock dates back to the 1970s and needs to be replaced".

As an Informed Sources Extra in the March Modern Railways points out, life extension of IC125 to 2025 and beyond is the best value for money way forward.

The March Modern Railways goes on sale today priced at a very reasonab...
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