Source · National Audit Office
Network Rail’s sale of railway arches
Published: 2 May 2019
Recommendations: 4
Type: Value for Money
NAO confirmed: 4
Department: Department for Transport
This report examines the value for money of Network Rail’s sale of a major part of its commercial real estate portfolio.
Recommendations
| Rec | Recommendation | Addressee | Acceptance | Implementation |
|---|---|---|---|---|
| 1 |
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.
Ref Page 10, paragraph 17, point a
· Implemented Q1 2019-20
|
HM Treasury | Accepted | Implemented ✓ NAO |
| 2 |
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.
Ref Page 10, paragraph 17, point b
· Implemented Q1 2019-20
|
HM Treasury | Accepted | Implemented ✓ NAO |
| 3 |
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.
Ref Page 10, paragraph 17, point c
· Implemented Q1 2019-20
|
HM Treasury | Accepted | Implemented ✓ NAO |
| 4 |
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.
Ref Page 10, paragraph 17, point d
· Implemented 10/2019
|
Network Rail | Accepted | Implemented ✓ NAO |
Public Accounts Committee follow-up
The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.