Late delivery of rail projects “unacceptable”, says regulator

Office of Rail and Road says review of its own role in Network Rail projects is “appropriate”

“The escalating costs and late delivery of key rail projects are unacceptable,” an Office of Rail and Road (ORR) spokesman said today (November 20), in response to the Public Accounts Committee’s scrutiny of Network Rail.

The ORR’s statement continued: “The report recognises that problems have arisen which need addressing for rail users and taxpayers, and makes a series of recommendations which affect a number of parties. We need to learn the lessons, and agree with PAC’s recommendations that uncertainties in key projects need to be addressed differently; clear accountability arrangements need to be in place for major projects; Network Rail needs to embed tighter project planning, cost control and deliverability; and a sector-wide skills strategy for the industry is needed.”

The PAC report said that “passengers and the public are paying a heavy price, and we must question whether the ORR is fit for purpose”.

The ORR responded: “With the changes to Network Rail’s ownership and finances since it became a public sector company, ORR agrees that a review of its own role in major projects is appropriate. That review will need to cover the specification, planning and costing of major projects, their delivery and monitoring. It is important that this review covers governance arrangements across all parties.”

Based on government requirements for the rail network, NR sets out the work it will carry out in five-yearly cycles. The ORR reviews these five-year programmes, including the expected costs.

• Network Rail accused of “severe planning and budget failures”
• For more on this story, read RAIL 789, published December 9.