Source · Select Committees · Public Accounts Committee
Recommendation 23
23
The Office of Rail and Road told us that in Control Period 5 (2014–15 to...
Conclusion
The Office of Rail and Road told us that in Control Period 5 (2014–15 to 2018–19), Network Rail became less efficient and failed to meet efficiency targets.58 Indeed, in contrast to assumptions made by the Office of Rail and Road that Network Rail could improve the efficiency of its core business activities by 19.4% during Control Period 5, its efficiency actually declined by 7.4%.59 For Control Period 6 (2019–20 to 2023–24), Network Rail told us it has agreed to a target of £4 billion of efficiency savings on operations, maintenance, renewals and support activities. This is an increase from the original target of £3.5 billion, which Network Rail considers it can exceed.60
Government Response
Not Addressed
HM Government
Not Addressed
6.2 Network Rail will write to the Committee in December 2021. Network Rail remain committed to delivering the committed efficiency improvements in Control Period 6, and Network Rail will continue to be held to account for doing so by the independent Office of Rail and Road. Network Rail is developing a detailed response to recommendation 6 for submission by December 2021. In this, Network Rail will further set out how it will achieve the efficiency target in Control Period 6 and address wider points raised by the Committee: • set out improvements in approach, process, incentivisation and governance for Control Period 6 delivery; • describe the efficiencies framework to track the movement of industry costs over time; • provide details of efficiency targets for the remaining years of Control Period 6; • explain the increase in the Operations, Maintenance and Renewals (OMR) efficiency target from £3.5 billion to £4 billion; and • provide further detail on the impact of the COVID-19 pandemic.