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MPs blame west coast mainline fiasco on 'complete lack of common sense' MPs blame west coast mainline fiasco on 'complete lack of common sense'
(4 months later)
Contracts for high speed rail and Thameslink risk being bungled unless the Department for Transport quickly learns the lessons from the west coast franchising fiasco, the Commons public accounts committee .Contracts for high speed rail and Thameslink risk being bungled unless the Department for Transport quickly learns the lessons from the west coast franchising fiasco, the Commons public accounts committee .
Its report said the aborted west coast franchise award was down to a "complete lack of common sense" from "blinkered, rushed" senior officials.Its report said the aborted west coast franchise award was down to a "complete lack of common sense" from "blinkered, rushed" senior officials.
Margaret Hodge, chair of the committee, said the cost to the taxpayer of the aborted competition would be very much larger than the £50m so far admitted by the government. Hodge said: "The franchising process was littered with basic errors. The department yet again failed to learn from previous disasters, like the Metronet contract. It failed to heed advice from its lawyers. Cuts in staffing and in consultancy budgets contributed to a lack of key skills."Margaret Hodge, chair of the committee, said the cost to the taxpayer of the aborted competition would be very much larger than the £50m so far admitted by the government. Hodge said: "The franchising process was littered with basic errors. The department yet again failed to learn from previous disasters, like the Metronet contract. It failed to heed advice from its lawyers. Cuts in staffing and in consultancy budgets contributed to a lack of key skills."
The rights to run the lucrative London-Manchester-Glasgow service were awarded to First Group before rivals and incumbents Virgin Rail launched a legal challenge. The MPs found there would be significant costs resulting from delays in investment in the franchise.The rights to run the lucrative London-Manchester-Glasgow service were awarded to First Group before rivals and incumbents Virgin Rail launched a legal challenge. The MPs found there would be significant costs resulting from delays in investment in the franchise.
The committee said the department spent £1.9m on staff costs and external advisers to run the franchise competition – a fraction of the estimated £10m the train operating companies each spent on their bids. The committee said that attempts to cut costs by not employing external experts had backfired to the tune of tens of millions of pounds.The committee said the department spent £1.9m on staff costs and external advisers to run the franchise competition – a fraction of the estimated £10m the train operating companies each spent on their bids. The committee said that attempts to cut costs by not employing external experts had backfired to the tune of tens of millions of pounds.
Hodge said the committee was "astonished" by the lack of leadership. "There was no single person responsible from beginning to end and, therefore, no one who had to live with the consequences of bad policy decisions.Hodge said the committee was "astonished" by the lack of leadership. "There was no single person responsible from beginning to end and, therefore, no one who had to live with the consequences of bad policy decisions.
"We are astonished that the permanent secretary did not oversee the project because he was told he could not see all the information which might have enabled him to challenge the processes, although it was one of the most important tasks for which the department is responsible."We are astonished that the permanent secretary did not oversee the project because he was told he could not see all the information which might have enabled him to challenge the processes, although it was one of the most important tasks for which the department is responsible.
"Given that the department got it so wrong over this competition, we must feel concern over how properly it will handle future projects, including HS2 and Thameslink. The department needs to get its house in order and put basic principles and practices at the heart of what it does, with an appropriately qualified and senior person in charge of the project throughout and an accessible leadership team ready and willing to hear and act on warning signs.""Given that the department got it so wrong over this competition, we must feel concern over how properly it will handle future projects, including HS2 and Thameslink. The department needs to get its house in order and put basic principles and practices at the heart of what it does, with an appropriately qualified and senior person in charge of the project throughout and an accessible leadership team ready and willing to hear and act on warning signs."
A transport select committee report last month branded the decision to press ahead with rail franchising with depleted staff "irresponsible" and a "recipe for failure". An inquiry by Sam Laidlaw commissioned by the transport secretary, Patrick McLoughlin, in the wake of the cancellation found there were serious errors by overstretched civil servants in calculating and assessing financial guarantees from bidders.A transport select committee report last month branded the decision to press ahead with rail franchising with depleted staff "irresponsible" and a "recipe for failure". An inquiry by Sam Laidlaw commissioned by the transport secretary, Patrick McLoughlin, in the wake of the cancellation found there were serious errors by overstretched civil servants in calculating and assessing financial guarantees from bidders.
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