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Source · National Audit Office

Network Rail’s sale of railway arches

This report examines the value for money of Network Rail’s sale of a major part of its commercial real estate portfolio.

Published: 2 May 2019 Recommendations: 4 Type: Value for Money NAO confirmed: 4 Department: Department for Transport
Dept: Department for Transport Topics: Asset sales and privatisationCommercial and financial managementCommercial and regulationCorporate financeProcurement and contract managementTransport nao.org.uk →

Recommendations

4 items
4 accepted 4 implemented

Recommendation 1

Addressee: HM Treasury · Source location: Page 10, paragraph 17, point a

Before disposing of assets, HM Treasury and the selling department should consider the potential impact of the disposal on wider government policy delivery. Where the impact could be significant, the Department should engage with policy leads in other departments to consider broadening the sale’s objectives.

Response position: Accepted

Delivery: Implemented · Q1 2019-20 · Confirmed by NAO

Recommendation 2

Addressee: HM Treasury · Source location: Page 10, paragraph 17, point b

The selling department should engage early with stakeholders that are likely to be (or perceive to be) affected by an asset sale – even in cases where this is unrelated to the objectives of a sale – to reduce the risk of the transaction and allow their views to be considered by other parts of government.

Response position: Accepted

Delivery: Implemented · Q1 2019-20 · Confirmed by NAO

Recommendation 3

Addressee: HM Treasury · Source location: Page 10, paragraph 17, point c

The selling department should consider and document on a timely basis whether contracting with the new owners in areas such as future investment plans and explicit customer protections provides value for money.

Response position: Accepted

Delivery: Implemented · Q1 2019-20 · Confirmed by NAO

Recommendation 4

Addressee: Network Rail · Source location: Page 10, paragraph 17, point d

Network Rail, and any department selling assets, should monitor whether future owners comply fully with the commitments they made in their final bid to hold them to account irrespective of whether these commitments form part of the final sales contract.

Response position: Accepted

Delivery: Implemented · 10/2019 · Confirmed by NAO

Public Accounts Committee follow-up

1 report

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.