Wednesday, 31 October 2012

How to negotiate with the Private Sector, No 94

Exciting news on Ministers' determination to get value for money from franchises!

Eye understands that the latest model, a five point plan known as the Pentangle, is both simple and effective and has even been signed off by the Devil .

New Ministerial Five Point Plan as follows:

1. Start off with at least two bidders, or one and a public sector comparator.

2. Stand down all bidders bar one, and immobilise the public sector comparator.

3. Confirm that only one private sector company is in the running. No, really!

4. React in a surprised fashion when the sole bidder bends your department over a table and rogers it senseless.

5. Thank the sole bidder manfully, then stick telephone directory down what is left of trousers before inevitable meeting with Treasury, PAC, NAO, TSC, etc...

Eye kids you not.

Siemens confirms further delay to Thameslink signing

This from Siemens...


Steve Scrimshaw, Managing Director of Siemens Rail, today commented:

“The Thameslink negotiations are ongoing and although we are disappointed that they have taken longer than anticipated, we are making good progress and we remain confident that we will achieve closure of this important deal.”

“Our project team is in detailed negotiations with the Department for Transport and in daily contact with them and other key stakeholders.”

“Depending on progress over the next month or so, we hope to achieve commercial close by Christmas with financial closure in the new year".

"We have been forging ahead with the manufacturing planning of our Desiro City train for Thameslink, the second generation commuter train based on the very successful Desiro UK train. We are already well advanced with our plans for the start of vehicle testing at our dedicated test track later this year.”

"Having already invested well over 50 million Euros – at our own risk - in its development, I look forward to the Desiro City train taking pride of place on the UK rail network."


And in more good news for the beleaguered DfT, additional delays in ordering the Thameslink fleet will mean newly electrified routes in the North will have to be served by diesel trains.

McLoughlin & Rutnam in front of TSC today

This from the Transport Select Committee...


The Transport Select Committee will call the Secretary of State for Transport, Rt Hon Patrick McLoughlin MP, and the Permanent Secretary at the Department for Transport, Philip Rutnam, to give oral evidence on the cancellation of the competition to run the West Coast Main Line franchise.  

Wednesday 31 October at 2.45 pm

Location:  Grimond Room, Portcullis House

Announcing the session Tranport Committee Chair Louise Ellman MP said:

It is astonishing that the Government has had to cancel the West Coast Main Line franchise competition and delay other competitions. Just last month the Secretary of State told us that he was content with how the Department for Transport had handled the West Coast Main Line competition and that Virgin’s challenge to the outcome would be defended robustly. 

“I expect the Department’s review of what went wrong to be available by the end of this month and we will want to examine that very carefully. We will also want to know how much this episode has cost the taxpayer, what lessons will be learnt, and what will be the wider implications for franchising. In addition, I expect the Committee to look closely at the Government’s review of franchising when it is published at the end of this year."


You can view the session live here.