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...

Railway Garden Competition - Durham

This via @Arctic_Troll...

 
Disgraceful! And not even Advent yet.

RDG publishes initial thoughts on Franchise Review

This from the minutes of the 9th October meeting of the Rail Delivery Group...

Independent review of franchising
 
This item had been placed on the agenda of the meeting at short notice in the light of the events of the previous week. It was felt that RDG should take a lead on this issue and express the industry’s views to both Government and the independent review of franchising
Points made during discussions included:

• It was essential that the franchising process was restarted as soon as possible;
• There were many changes that would be desirable but there needed to be realism about what was achievable and changes must not get in the way of restarting the franchising process;
• RDG should consider what had been said before on the subject but should not be constrained by previously expressed views;
• RDG‘s views on the key principles of franchising should be expressed succinctly;
• Owning groups were still considering the changes they would seek and the input that they would make; and
• RDG should identify where there was common ground between the owning groups.

During further discussion the Group suggested that some of the issues that could be lodged with the independent review could include:

• The cost, complexity and risk associated with bidding;
• The size, length and risks of franchises;
• That a significant proportion of the savings and efficiencies presumed in the Statement of Funds Available and assumed in the Initial Industry Plan were dependent on the rapid reinstatement of the franchising process enabling franchises to work with Network Rail;
• Mechanisms used in other transport industries and other countries including the use of framework agreements should be considered; and
• There was a paramount need for flexibility in franchising.

The Group agreed that the issue should be progressed by the creation of a working group. The working group should:

• Review previous work on franchising;
• Recognise that significant change could delay the restarting of the franchise process;
• Be distinct from work done by ATOC and other groups;
• Produce a straw man for further discussion; and
• Be responsible for producing RDG’s submission to the independent review of franchising.

Whilst this is a helpful starting point there are one or two gaps in the information that the RDG has published in its minutes.

For instance: 

• Who will be on the new Working Group?

• When is it due to report back?

• Will the Working Group's findings be made public? and;

• Will the Industry Forum be invited to comment on the findings of the Working Group before they are submitted to DfT/Richard Brown?

Now that the ORR has given its blessing to formalising the role of the RDG the group needs to become a lot more transparent and be much more proactive in its engagement with the wider industry.

UPDATE: This from Messrs S Ply & Chain...

Whilst much of the focus on the InterCity West Coast fiasco has been on the impact that it will have on bidders the knock on effect within the supply chain appears not to be given voice.

Significant investment in rolling stock usually follows new franchise awards and with so many franchises now on hold there is a real risk of the supply chain stagnating and shrinking in the short term and overheating in the long.

As McNulty made clear these peaks and troughs need levelling out for the good of the whole industry as well as for tax and fare payers.

RDG needs to broaden its reach and engage with members of the Supply Chain to ensure that conversations on the future of franchising are not restricted to a narrow clique of Owner Groups.

Varsity Line's radical rolling stock solution

This from Poppy the Station Cat...

Good to see that the promoters of East West Rail have embraced the Age of Austerity!

Clearly aware of the challenges faced by today's industry those backing the restoration of the old Varsity Line are planning to use cascaded rolling stock, judging by this video.



Fast forward to 3:01 and at 3:24 for a glorious slo-mo of an articulated bogie!

How marvellous to see this splendid British built train finally make it into revenue earning service.

But is Crewe Heritage Centre aware that they may lose their star exhibit?

ORR backs new talking shop.

Exciting news from the Office of Rail Regulation!

The Office of Rail Regulation (ORR) has today announced that it supports the formalisation of the Rail Delivery Group (RDG). This will strengthen the group’s ability to lead change benefitting the whole rail industry, and improve the value for money the sector delivers for passengers, taxpayers, freight customers and funders.

Eye readers may be interested to know that the RDG's stunning contribution to the review of franchising following the InterCity West Coast fiasco has merited the organisation an entry in the latest issue of the Hitchhikers Guide to the Galaxy.

It reads: 'Mostly pointless'.

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.

Laidlaw Inquiry - Remit published

This from the Department for Transport...

Text of letter from the Secretary of State to Sam Laidlaw
 
15 Oct 2012
 
Following my decision to cancel the competition for running the InterCity WestCoast franchise, I am asking you to lead an independent Inquiry into the Department’s handling of the competition.

I would like your Inquiry to identify the lessons to be learned for the Department and for you to recommend what measures the Department should implement to ensure the sound running of future competitions. Terms of Reference of the Inquiry are enclosed.
 
Decisions on how to run the Inquiry and who to involve in it are for you as leader of the Inquiry. You may want to draw on independent advice from outside the Department and from other Non-Executive Board Members.
 
I ask that you report your initial findings to me on Friday 26 October and to provide a final report by the end of November.
 
Terms of Reference: Inquiry into the Lessons Learned for DfT from InterCity West Coast (“ICWC”) competition
 
1. The Inquiry shall identify the lessons to be learned from the Department’s handling of the franchising process for ICWC in order to ensure the Department maximises benefits to transport users and value for money for taxpayers in future franchise competitions.
 
2. The Inquiry will comprise an immediate study of the lessons learned following the discovery of significant technical flaws in the way the franchising process for ICWC was conducted which resulted in the cancellation of the ICWC franchising process on 3 October 2012, in particular:
 
a. The course of events in DfT that led to these technical flaws in order to identify what happened and why it happened up to the point that the intention to award the contract was announced on 15 August 2012;
 
b. The roles and responsibilities of different advisory and decision-making parties within DfT and externally in relation to these flaws, including the Board Investment and Commercial Committee, the Contract Awards Committee and the Rail Refranchising Programme Board; how well these committees performed their roles, and what can be learned from this about the appropriate structure for governance and assurance of major contract awards;
 
c. The arrangements for ensuring appropriate review of the technical elements of contract award and appraisal and appropriate quality assurance.
 
3. The Inquiry should make recommendations on the basis of its findings.
 
4. The Inquiry will be led by Sam Laidlaw, DfT’s lead Non-Executive Board Member who also leads on procurement among Government Non-Executives. He will draw on others as he sees fit, including from other Non-Executive Board Members. By agreement, Linklaters and Ernst & Young have been appointed to provide an external perspective to the Inquiry.
 
5. The Inquiry should be completed as soon as possible. Initial findings shall be made available to the Department by 26 October.
 
6. The Inquiry will be taking place in parallel with the Department’s HR investigations. The Laidlaw Inquiry Report will be published no later than end November 2012.

ENDS

DfT - Mind the credibility Gap!

Good to see that the Department for Transport remains at the very top of its game!

Eye understands that late last night Marsham Street was desperate to speak to Tim O'Toole.

So naturally they rang London Underground to try to get hold of him... 

Great Minster House - all change please ladies and gentlemen. All change!

Virgin set to get extension as DOR deactivated

This from the Department for Transport...

Department for Transport to negotiate with Virgin on temporary operation of West Coast rail services

The Department for Transport will negotiate with Virgin Rail Group for them to continue providing rail services on the West Coast Main Line for a temporary period.

The current franchise is due to expire on 9 December after which it is the government’s intention that Virgin remain as operator for a short period – expected to be between 9 and 13 months – while a competition is run for an interim franchise agreement. This interim agreement, which would be open to any bidders, will then run until the new long term West Coast franchise is ready to commence.

The government believes that this is the best way to ensure services are maintained and that there is no impact on passengers.

Transport Secretary Patrick McLoughlin said:

    “The cancellation of the InterCity West Coast franchise is deeply regrettable and I apologise to the bidders involved and the taxpayer who have a right to expect better.

    “My priority now is to fix the problem and the first step is to take urgent action to ensure that on the 9 December services continue to run to the same standard and passengers are not affected.

    “I believe Virgin remaining as operator for a short period of time is the best way to do this and my officials and I will be working flat out to make this happen.”

On 3 October the previous competition to run trains on this line was cancelled following the discovery of significant technical flaws in the way the franchise process was conducted.

The department also paused the on-going franchise programme including live competitions on Essex Thameside, Great Western and Thameslink and set up two independent reviews into what went wrong with the West Coast competition and the wider DfT rail franchise programme.
 
Notes to editors

• The Transport Secretary has ordered two independent reviews:
• The first will be an urgent independent examination into the lessons to be learned from the department’s handling of West Coast competition. Conducted by independent advisers and overseen by Centrica chief executive Sam Laidlaw and former PricewaterhouseCoopers strategy chairman Ed Smith, both DfT non-executive directors, this review will look as soon as possible at what happened and why with a view to delivering an initial report by the end of October.
• The second independent review will be undertaken by Eurostar chairman Richard Brown CBE, and examine the wider rail franchising programme. It will look in detail at 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. This will report back by the end of December.

ENDS

UPDATE: This from Directly Operated Railways...

Taxpayers will be relieved to know that we are not so much deactivated, as waiting in the wings! 

Railway Garden Competition - Charing Cross

This with a bowler tip to @EliotAnderson...

Not strictly a railway garden, the Charing Cross hotel having been sold off many years ago.

None the less, too good to leave out of this year's competition.

In fact astonishingly good!

Where are they now - Adrian Lyons

Another in an occasional series designed to assist Patrick McLoughlin and Richard Brown determine the way forward for contracted passenger services

Inviting the onetime Director General of the Railway Forum and a former Master of the Worshipful Company of Drapers to support Richard Brown's review would be welcomed by many on the railway and in the City.

Adrian Lyons, was last seen here.

That is all.

UPDATE: This from Sidney Sneak!...

Nonsense!

Wasn't the Fact Compiler most recently seen with General Lyons at the Midland Hotel, in Derby, last Thursday night?

The Fact Compiler, respectfully, pleads the Fifth...

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'.

Railway Garden Competition - Eastbourne

This from Captain Morgan...

Can any Eye readers identify the variety of electric moss that is currently growing adjacent to platform 3 at Eastbourne station?

Eye awaits a Smart Alec comment from the Apostle of the Third Rail about the unrivalled green credentials of the Southern...

UPDATE: @DriverPotter responds...

Mother Nature herself embraces the 3rd Rail. Deeply pleasing. 
 

Pointless signs - 12:13 Paignton - Exmouth 10/10/12

DOR names ICWC Team - Shocker

Found in the street outside the DfT's Marsham Street bunker...

 

Literally unbelievable!

Attlee derailed in the Lords

This from The Woolsack...

An amusing exchange this afternoon between Earl Attlee and My Lord Adonis in the House of Lords.

Attlee quoted a certain Prof David Begg a number of times in his speech, citing him as an expert commentator as based on his recent article in the Financial Times.

Adonis interjected asking whether Lord Attlee was aware David Begg is a member of First Groups' board?

Ooops!

Cue goldfish impression and shocked looks on the government benches. 

UPDATE: The House of Lords transcript from the Private Notice Question can be found here.

West in rebellion over high-handed commissioners

This epistle from My Lord Abbot of Pewsey...

Much commotion in the Vale of Pewsey as has not been seen since the Prayer Book Rebellion almost reached here in 1549!

 It was occasioned by the issuing of the Great Western franchising ITT.  This document seems to decree that direct links  between the West of England from the Metropolis should be severed once electric lines are installed. 

Pewsey travellers will be forced to change at Newbury, where apparently people have whistles blown at them.

At a packed meeting last week in the village hall the good citizens of the Vale expressed their great disquiet at this manifestation of what they have been told is called the 'sparks effect'.  

There was little satisfaction that such sainted figures as Christopher Stokes had denounced the current franchising methods in the Financial Times as not fit for purpose and a deep suspicion remains that there are those in the DfT who consider the local services on the Berks and Hants Railway as an irritating appendage that should be surreptitiously run down. 

As is the custom these days a petition has been established and prayers are also being offered for Richard Brown and those working with him, that they will be guided by good sense and that through travel will prevail.

UPDATE: This from Dreadnought...

Regarding the observation that people have whistles blown at them in Newbury.  

Not wishing to be pedantic but I think you will find that the tale related by Mr Gerard Francis Gisborne Twistleton-Wykeham-Fiennes OBE actually related to people from Newbury having whistles blown at them in Reading.

UPDATE: The Fact Compiler asks:

Do you come from Newbury? 

Have you had a whistle blown at you in an intimidating manner be a member of Western Region Staff?

Or perhaps you live in Reading and are more used to that sort of thing?

Either way Eye doesn't give a hoot or a shrill blast on the whistle... (That's enough being rude to readers on the Western. Ed)

Railway Peers scrutinise ICWC fiasco

Further proof that the Upper House continues to offer better scrutiny of the Executive than the Elected Chamber!

This from Railway Questions in the House of Lords yesterday...

Lord Kennedy of Southwark (Labour)
To ask Her Majesty's Government what is their estimate of the cost to the public purse of cancelling the contract award for the West Coast Main Line railway franchise.

Earl Attlee (Whip, House of Lords; Conservative)
My Lords, my right honourable friend the Secretary of State for Transport will make a full Statement in the other place at the earliest opportunity. The department will remunerate fully bidders for the direct and reasonable costs of putting together their bids and expects this cost to be approximately £40 million. The department expects additional costs from mobilising Directly Operated Railways, reissuing the tender and carrying out two independent reviews. The department will monitor these costs closely and be fully transparent in keeping the House informed.

Lord Kennedy of Southwark (Labour)
My Lords, it is very regrettable that the noble Earl has not taken the first opportunity in Parliament to say sorry for this fiasco. He should be truly ashamed of what has gone on so I invite him to take the opportunity to apologise. Why are the Government saying there have been regrettable and unacceptable mistakes and yet no Minister is accepting responsibility?

Earl Attlee (Whip, House of Lords; Conservative)
My Lords, some noble Lords express disappointment that a full Statement has not been made. Nobody asked for a full Statement. I was very willing to answer a PNQ yesterday afternoon but there was not one because we have the topical question today. As for ministerial responsibility, noble Lords know perfectly well that this was a highly regrettable mistake by officials, not by Ministers.

Lord Bradshaw (Liberal Democrat)
Will the noble Earl send word to his colleagues elsewhere that no new franchises should be let for any railway until full consideration is made of the high level of risk which the Government are seeking to transfer to the private sector? I believe that the private sector is unable to bear that risk because predicting revenues 15 years hence is nearly impossible. I commend him to the Mayor of London who is running the London Overground railway on an entirely different basis where the revenue risk lies with the GLC and the people running the franchise are paid to operate the railway efficiently but are not expected to take these unbearable risks.

Earl Attlee (Whip, House of Lords; Conservative)
My noble friend asks extremely good questions and that is the purpose of the Brown review which will look into the franchising system and report back to us by the end of the year.

Lord Adonis (Labour)
My Lords, does the noble Earl agree, given the scale of the debacle we have seen on the west coast main line, that the responsibility of senior officials and Ministers should be examined in the forthcoming review? Is he aware that since last Tuesday the only steps that have been taken have been the suspension of three fairly junior officials and the establishment of a review under a member of the DfT's own board, whose colleagues include all of the senior Ministers and officials of the department? Does the noble Earl agree that this is not a wise proceeding in public policy and it is probably not very moral either?

Earl Attlee (Whip, House of Lords; Conservative)
My Lords, I do not agree with the noble Lord. The first step that the Government have taken is to set up two inquiries. The first one, headed up by Sam Laidlaw, will look at exactly what went wrong. If there was ministerial failure, no doubt he will identify that.

Lord Adonis (Labour)
Sam Laidlaw is a member of the DfT's own board. Is the noble Earl not aware of that?

Earl Attlee (Whip, House of Lords; Conservative)
My Lords, if there is anything wrong with the report, the noble Lord will be able to challenge me in this House on that very point. The first inquiry will look at what went wrong. The second inquiry will look at the wider franchising issues, as I said in response to my noble friend. We should be proud of our civil servants. I certainly feel honoured to be served by them. However, officials are human and can make mistakes, even big ones. Nevertheless, I want to make it perfectly clear that I retain full confidence in my department's officials and I am more than content to account for their activities in your Lordships' House.

Meanwhile Baroness Royall will ask the Government about its review into the ICWC fiasco after today's oral questions (at about 15.30). View it live here.

Overheard at Breakfast - On DafT Recruitment

Scene: The kitchen in any number of railway households throughout the land..

Daughter: Daddy
 
Father: Yes Darling?

Daughter: Why is steam coming out of your ears?  Is eccentric uncle Philip at DfT having one of his turns.

Father: How very perceptive of you, my Angel.
 
Daughter: What is it this time Daddy?
 
Father: Well, Uncle Philip has asked head hunters to see if they can find some senior rail managers  to help Uncle Michael take over Intercity West coast from Uncle Richard.

Daughter: But Daddy, won't anyone senior enough already have a job.

Father: Probably dearest.
 
Daughter: Uncle Ivor used to run the West Coast  and he hasn't got a job.
 
Father: Hush dear, we don't mention Uncle Ivor since he went to China.
 
Daughter: What about Uncle David? He used to run East Coast and he's quite young too and mummy thinks he's dishy?.
 
Father: Luckily Uncle David is off to Ireland.
 
Daughter: Anyway Daddy, if Uncle Philip lets Uncle Michael take over the West Coast, won't he have to take over Great Western too when the franchise extension expires?
 
Father: Sounds logical, sweetheart.
 
Daughter: So he'd need even more experienced senior managers.  Uncle John used to run Intercity, he told us about it in the latest Modern Railways.
 
Father: Remind me to tell uncle James not to leave his magazine lying around where impressionable minds can pick it up.
 
Daughter: Anyway  Daddy why does Uncle Philip think that replacing Uncle Chris at West Coast and Uncle Mark at Great Western with managers who haven't got a job is a good idea?
 
Father: Nobody knows, now eat up your Weetabix

Out of the mouths of babes...

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.