£500m Network Rail shortfall 'could cause long-term damage'

 

Network Rail’s funding problems could cause serious damage to its supply chain, impact on passengers, and lead to a less efficient rail industry, a senior figure has warned MPs and Lords.

Peter Loosley, policy director at trade body the Railway Industry Association (RIA) told a meeting of the All-Party Parliamentary Rail Group that there was a shortfall of approximately £500m in renewals work in Network Rail’s current programme.

”Local

He warned that the hiatus in orders towards the end of Control Period 5 (CP5), which runs to March 2019, combined with a drop in work on future projects under the Governance for Railway Investment Projects (GRIP) process, poses a ‘significant threat’ to the rail network’s supply chain.

RIA members had reported falls in demand of between 20% and 45% in renewals work and ‘little if any GRIP 1-3 development work coming through for CP6’.

Suppliers also reported reduced confidence to invest, exemplified by British Steel downshifting its rail finishing facility by around 40%, and reduced staff levels at many companies.

Mr Loosley argued that this would require firms to ramp up staffing levels when work becomes available again, producing a very inefficient way of working, compromising productivity and increasing costs.

The downturn could particularly impact on SME and specialist companies, who often have a forward workload visibility of only a few months, he argued.

'It is not impossible that some will not survive into CP6,’ he warned.

Suppliers also described activity around CP6 enhancement work as ‘worryingly low, suggesting that the downturn could possibly last into CP6, even if the CP6 settlement restores volumes to pre-downturn levels’.

Mr Loosley said the RIA was ‘urgently lobbying’ Department for Transport and Treasury ministers and officials to see if £500m could be advanced from CP6 to plug the gap.

In the longer term, the RIA wants to see a change in the way that Network Rail’s work is planned, moving from five-year control periods, to a ‘regularly reviewed rolling five-year programme that doesn’t have specific starting and stopping points’.

The Government’s High Level Output Specification (HLOS) rail strategy, is due to be published this week, accompanied a Statement of Funds Available.

The Campaign for Better Transport suggested that the HLOS will move away from a five-year time horizon towards a rolling programme of projects. It said this ‘sounds great, but it could be a good excuse to do nothing’.

 

Also see

Register now for full access


Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.

Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors. Use the link below to register your details for full, free access.

Already a registered? Login

 
comments powered by Disqus
 
 
highways jobs

Lead Engineer [Development]

Knowsley Metropolitan Borough Council
£40,760 - £41,675 per annum
Looking for an exciting new opportunity? Join us in Knowsley’s Major Development Team! Knowsley (Metropolitan borough), Merseyside
Recuriter: Knowsley Metropolitan Borough Council

Principal Engineer [Development]

Knowsley Metropolitan Borough Council
£34,788 - £35,934 per annum
Looking for an exciting new opportunity? Join us in Knowsley’s Major Development Team! Knowsley (Metropolitan borough), Merseyside
Recuriter: Knowsley Metropolitan Borough Council

Director of Neighbourhoods

Havering London Borough Council
c.£138,000
As Director of Neighbourhoods, you will provide strategic leadership for a full range of regulatory and non-regulatory services Romford, London (Greater)
Recuriter: Havering London Borough Council

Director of Economic Development & Planning

Wiltshire Council
£99,856 - £110,084 per annum
In this role you will have a key role in growing the local economy Wiltshire
Recuriter: Wiltshire Council

Executive Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£24,660 - £31,764
A new opportunity has arisen for an Executive Officer to join The Environment and Community Services Directorate Richmond upon Thames, London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Director, Governance and Improvement

City of York Council
£87,623 to £97,149
We are looking for an exceptional individual to be appointed to the position of Director of Governance and Improvement. York, North Yorkshire
Recuriter: City of York Council

Chief Fire Officer

West Sussex County Council
Competitive Salary plus Financial Support for Recruitment and Retention
We are looking for an exceptional individual who can lead our Fire & Rescue Service Chichester, West Sussex
Recuriter: West Sussex County Council

Inspector / Senior Inspector

City of Bradford MDC
£21,166 - £31,371 pa
This is an opportunity to join the Highway Maintenance team who have responsibility for maintenance of around 2,000km of adopted road network. Bradford, West Yorkshire
Recuriter: City of Bradford MDC

Traffic Management Operative/Foreman

Balfour Beatty
Competitive
Are you a Traffic Management Operative/Foreman with Highspeed (12AB) Qualifications, looking for a new and exciting opportunity? If so read on..... Leatherhead, Surrey
Recuriter: Balfour Beatty

Senior Team Leader

Redbridge London Borough Council
£35,992 to £38,994 per annum inclusive
Looking for individuals with initiative, evidence of experience in managing a street cleansing service and motivating... Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Road Safety Engineer

Cambridgeshire County Council
£21,589 - £31,371
We are looking for a candidate who can participate in developing and delivering technically sound highway engineering solutions. Cambridgeshire
Recuriter: Cambridgeshire County Council

Information Management Officer x 2 Jobs

Kirklees Metropolitan Council
£24,799 - £26,317
Looking for better and smarter ways to operate and you will play a key role working across a broad range of service... Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Graduate Engineer

Sandwell Metropolitan Borough Council
£24,313 - £28,785 per annum
This is an exciting new opportunity in the Highway Services team to play a pivotal role in creating a safe and... Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

School Crossing Patrol

Brent Council
£21,591 - £22,377 p.a. inc. pro rata.
Looking for someone that is friendly, has great communication skills and enjoys working with children. Wembley, London (Greater)
Recuriter: Brent Council

Engineer (Highway Design)

Darlington Borough Council
£31,371 - £33,799
Looking to employ an experienced person within the Highway Design team to meet the challenge of enabling development... Darlington, Durham
Recuriter: Darlington Borough Council

Project Manager – Major Maintenance and Infrastructure Projects 

Liverpool City Council
£42,683 - £47,491 
The successful candidate will ensure that effective procurement and delivery of highways maintenance and improvement. Liverpool, Merseyside
Recuriter: Liverpool City Council

Green Space Development Manager

Camden London Borough Council
£45,504 - £52,786
The successful candidate will join a dynamic, multi-disciplinary team and contribute to our commitment to deliver for... Camden, London (Greater)
Recuriter: Camden London Borough Council

Green Space Project Officer

Camden London Borough Council
£40,829 - £47,360
The successful candidate will join a dynamic, multi-disciplinary team and contribute to our commitment to deliver for the people of Camden, London (Greater)
Recuriter: Camden London Borough Council

Senior Principal Planning Officer - Fixed Term

Royal Borough of Greenwich
£39.774 - £42.684
Looking for key members of the team that will be instrumental in transforming the Borough and opportunities available for residents.  Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Career Grade Planner

Royal Borough of Greenwich
£27228 - £36711
In this role you will deal primarily with small-scale planning applications covering a wide range of planning issues. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich