{"id":76301,"date":"2020-05-18T09:19:16","date_gmt":"2020-05-18T08:19:16","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=76301"},"modified":"2020-05-18T09:19:16","modified_gmt":"2020-05-18T08:19:16","slug":"high-speed-rail-transparency","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/high-speed-rail-transparency\/76301\/","title":{"rendered":"Committee demands greater transparency on HS2 project"},"content":{"rendered":"

The high-speed rail project has gone \u201cbadly off course\u201d and the government needs to give regular, accurate and open updates on the problems the scheme is facing, says a new report by the Public Accounts Committee<\/h2>\n

In a report published yesterday (17 May), the Public Accounts Committee<\/a> demanded that government gives regular, accurate and open updates on the problems the high-speed rail project is facing and progress on developing the appropriate skills and capabilities.<\/p>\n

The committee said that the Department for Transport<\/a> (DfT) permanent secretary and HS2 Ltd<\/a> executives\u2019 appearance before the committee in March 2020 raised questions about the previous picture, provided by the witnesses, of the project\u2019s health.<\/p>\n

Phase one failings<\/h3>\n

The DfT and HS2 Ltd were aware of the scale of the high-speed rail’s cost and schedule overruns<\/a> as early as October 2018.<\/p>\n

In March\u202f2019, HS2 Ltd formally advised the department that it would not be able to deliver phase one of the programme on time or within\u202fthe available funding.<\/p>\n

However, the permanent secretary\u00a0did not\u00a0make\u00a0this\u00a0clear\u00a0when she appeared before the previous committee in October 2018 and\u00a0May 2019, even\u00a0when asked\u00a0specific questions about the programme\u2019s delivery timeline and budget, according to the report.<\/p>\n

The department\u2019s emerging estimate\u202fin\u202fDecember\u202f2019\u202fgave\u202fa potential cost of between \u00a365bn and \u00a388bn \u2013 17% and 58%\u202frespectively more than the available funding of \u00a355.7bn. These estimates were all given in 2015 prices, and so will also be revised to reflect inflation and changes in prices into the future.<\/p>\n

The report also concluded that HS2\u202fLtd\u2019s\u202fannual report and accounts for the year ending\u202f31\u202fMarch 2019\u202fsimilarly\u202ffailed to\u202fgive\u202fan accurate\u202faccount of the\u202fprogramme\u2019s problems.<\/p>\n

In\u00a0evidence to the committee, the DfT and\u00a0HS2 pleaded commercial sensitivity and\u00a0ongoing efforts to address the problems. However, the committee says\u00a0this was not an\u00a0adequate excuse\u00a0for not disclosing the risk and uncertainty the programme<\/a> was facing.<\/p>\n

A lack of capability<\/h3>\n

The committee is not convinced that the department and HS2 Ltd have the\u202fskills\u202fand\u202fcapability they need, now or in the future to deliver the high-speed rail project.<\/p>\n

A lack of capability continues\u202fto be an issue \u2013 by its own recent assessment HS2 Ltd\u202fstill has\u202fgaps\u202fin\u202fkey areas\u202fsuch as risk\u202fmanagement\u202fand\u202fassurance, project management\u202fand project control.<\/p>\n

The committee\u00a0also said it was not\u00a0convinced that\u00a0the DfT was\u00a0learning from problems across its major infrastructure\u00a0projects to\u00a0make\u00a0sufficient and meaningful changes to its management of infrastructure programmes<\/a>.<\/p>\n

In its recommendations to Government, the committee is seeking new, formal assurances that DfT and HS2 Ltd have the capability to manage the high-speed rail and its supply chain, into construction and through to completion.\u00a0 moz<\/p>\n

DfT & HS2 \u2018blindsided by contact with reality\u2019<\/h3>\n

Commenting on the report, committee chair Meg Hillier, said:\u00a0\u201cThe committee is concerned about how open the Department and HS2 Ltd executives have been in their account of this project. It is massively\u00a0over budget and delayed before work has even begun.<\/p>\n

\u201cThere is no excuse for hiding the nature and extent of the problems the project was facing from Parliament and the taxpayer.<\/p>\n

\u201cThe Department and HS2 appear to have been blindsided by contact with reality \u2013 when Phase One started moving through Parliament,\u00a0the predicted costs of\u00a0necessary commitments to the communities affected\u00a0have exploded from \u00a3245m to \u00a31.2bn.\u201d<\/p>\n

Hillier added: \u201cThe\u00a0government unfortunately has a wealth of mistakes on major transport infrastructure to learn from,\u00a0but it does not give confidence that\u00a0it is\u00a0finally going to take those lessons when this is\u00a0its\u00a0approach.<\/p>\n

\u201cIn\u00a0the six-monthly reports the department has now agreed to give us, we want to see an honest, open account,\u00a0and evidence of learning from past mistakes being applied to bring this project under control, to deliver it\u00a0within the\u00a0timeline and budget\u00a0that have been agreed in justifying the project.\u201d<\/p>\n

Undermine confidence<\/h3>\n

The committee\u2019s deputy chair,\u00a0Sir Geoffrey Clifton-Brown, commented:\u00a0\u201cThis PAC report on HS2 is one of the most critical, in both the transparency of Government and the handling of a project, that I have seen in my nine years in total on the committee.<\/p>\n

\u201cThe permanent secretary appeared before the committee in October 2018 and again in May 2019. In March 2019 HS2 Ltd formally told the department it had breached the terms of the Development Agreement, and would be unable to deliver the programme to cost and schedule\u00a0\u2013 yet the permanent secretary did not inform the committee on either appearance that the programme was in trouble.<\/p>\n

\u201cThis is a serious breach of the department\u2019s duty to Parliament and hence to the public, which as the report says, will undermine confidence.\u201d<\/p>\n

Clifton-Brown added: \u201cFurthermore, the PAC was in the dark about serious cost overruns and was therefore unable to do its duty to inform Parliament that value for money on the project was at risk.<\/p>\n

\u201cThe cost overruns have been blamed partly on the speed that the hybrid Bill committee for Phase One proceeded with. I was a member of that committee, which lasted for 20 months: this is complete nonsense.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

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