Rail managers slammed by MPs

Network Rail has “lost its grip” and Office of Rail Regulation may not be fit for purpose finds Public Accounts Committee

MPs on the Public Accounts Select Committee have raised serious concerns over planning and budgeting failures in Network Rail's current five year investment programme.

A report published today highlights “staggering and unacceptable” cost increases in the project to electrify the Great Western Main Line from London to Cardiff, which is now expected to cost up to £1.2 billion more than the £1.6 billion estimated a year ago.

It also points to the “uncertainty” around the costs and delivery dates for the electrification of both the TransPennine route and the Midland Main Line and warns more projects could be delayed in order to balance Network Rail’s budget.

Meg Hillier MP, chair of the public accounts committee, said: “Network Rail has lost its grip on managing large infrastructure projects. The result is a twofold blow to taxpayers: delays in the delivery of promised improvements, and a vastly bigger bill for delivering them.

“Our inquiry has found that agreed work could never have been delivered within the agreed budget and timeframe. Yet Network Rail, the Department for Transport and the regulator – the Office of Rail and Road – signed up to the plans anyway.

"Passengers and the public are paying a heavy price and we must question whether the ORR is fit for purpose."

The Committee has called for a fundamental review of the regulator’s role and effectiveness in planning rail infrastructure. It also wants the government to publish a revised and re-costed programme of electrification improvements, including a rationale for prioritising different schemes, following a review by Network Rail chairman Sir Peter Hendy.”