Source · Select Committees · Public Accounts Committee
Recommendation 14
14
Acknowledged
Airwave extension requires uncosted investment in infrastructure and agreement with Motorola
Recommendation
The CMA has proposed a charge control on Airwave which, once implemented, will make Airwave cheaper for the Department and emergency services.41 The Department considers that it can extend Airwave without creating a gap in service and without any negotiation with Motorola, provided it gives 12 months’ notice of an extension. It has not yet done this.42 The Independent Assurance Panel said that, to maintain Airwave’s performance, Airwave would need ongoing investment to: replace obsolete components, retain skills for managing the network and to maintain the steel and concrete in some 4,000 masts. It considered the latter had not yet been fully costed by the Department.43 The level of investment required will need to be agreed with Motorola.44 Demonstrating to the emergency services that ESN is ready to replace Airwave
Government Response Summary
The government acknowledges the implications of the CMA charge control on Airwave, stating it is reviewing the business case to reflect the ruling and engaging with users to support transition activities, but does not explicitly commit to issuing an extension notice or fully costing future Airwave investment needs.
Government Response
Acknowledged
HM Government
Acknowledged
2.1 The government agrees with the Committee’s recommendation. Target implementation date: end December 2023 2.2 If the CMA decision is upheld following appeal, and the charge control comes into effect, there will be scope to reduce local costs for users of the Airwave service and the department will continue to engage with users to determine how best to support user organisations with transition activities. 2.3 Scope for central support is limited by the way government funds are allocated across departments, policy areas and programmes. This will constrain the ability to pass the charge control savings directly onto users. 2.4 The reduced costs of Airwave will result in an overall government saving, rather than a department or programme gain. Funding decisions beyond the financial year 2024/25 are subject to future HM Treasury spending reviews based on the programme’s approved business case. 2.5 The ESMCP is reviewing the business case to reflect the CMA ruling to impose a charge control and procurement of new suppliers. Users are expected to realise savings from reduced Airwave costs. Delayed spend on ESN devices will offset the cost of new Airwave devices. The programme business case includes agreed principles that govern how costs are allocated centrally or to user groups. These principles can be varied only with agreement from all users and funding sponsor bodies. 2.6 The programme is engaging closely with user organisations to provide support for their transition activities, while operating in accordance with Home Office and HMG governance and funding structures.