Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 40 - 59)

WEDNESDAY 13 MAY 1998

MR MAURICE STOREY AND MR JOHN ASTBURY

  40.  So you are proposing to reduce the number of regional managers because I understand the idea during the review was that they would be halved from six to three? We find despite the fact there were assurances that the proposals would not be cherry-picked that in fact each region would maintain a regional manager and an assistant.
  (Mr Astbury)  As I recall Focus for Change, one of the options was to go down to three certainly but there was also an option for four, indeed five, a whole range of options and four was selected as the most strategically sensible and best option given the geographical spread these regional managers would have to tackle.

  Mr Campbell:  I am sure you can make the case for this, and this is the last point, but for those serving in coastguard stations at the sharp end it does look again as a case of the "poor bloody infantry". If there have to be cuts in order to pay for a new system coming in people in coastguard HQ are damn sure it is not going to be people from Coastguard HQ, it is not going to be officers, it is going to be the infantry. Thank you, Chair.

  Chairman:  Thank you, we understand your concerns. Ms Maria Eagle?

Maria Eagle

  41.  I also, as you may have spotted, represent a seat which does have a constituency interest in the proposed closure programmes. I hope you will forgive me if you ask some questions in respect of that. Am I right in thinking that the NAO seems to agree in the Report that the new technology, if and when you get it, in would enable you to do the job of these co-ordinating centres effectively from one place if you wished to do so? Is that realistic?
  (Mr Storey)  Theoretically you could say the AA does it from one place but we are talking about a fixed motorway network and fixed vehicles. I believe it is necessary to have some requirement close to the coast and I think we need to do it in certain areas. I think the infrastructure is entirely different round the coast compared to a motorway network. So I do not think we can do it from one centre in the UK.

  42.  Like the RAC does. They have one centre each and they do all their rescue calls from there. You do not envisage that being the future?
  (Mr Storey)  Not at all.

  43.  What kind of minimum number of centres do you envisage?
  (Mr Storey)  It is too early for me to state that. As I say, I have been in post for six weeks and I am charged to carry out a review of the business and I need time to go through that in detail.

  44.  Presumably the Agency itself will have had some thoughts on this. You might just not have read the details of it yet.
  (Mr Astbury)  On the first point, if I may, the "Birmingham coastguard syndrome" as it is commonly referred to, one has to remember the way the coastguard infrastructure is set out is a network that uses BT telephone lines. The more exchanges you go through the greater the risk of a failure and in a life saving organisation you have to mitigate that risk and that is one of the things we have done in terms of the five-year strategy through private wires.

  45.  Is that not an argument for having one centre?
  (Mr Astbury)  No it is not because it is not cost effective anyway. You would need X number of operators to operate the VHF radio sites. The AA, remember, do not monitor other than pick up telephones. We have to monitor radio.

  46.  You need the centres to do the other half of the job which is to monitor radio frequencies?
  (Mr Astbury)  Yes we do.

  47.  Thank you for that. It is interesting because it suggests that perhaps the closure of the four that are envisaged to be closed and the co-location of the fifth and sixth might not be the end of the process. There may be some further rationalisation but you are not in a position to say whether or not there will be. I want to explore a little how you have chosen the stations you propose to close. Can you tell me upon what criteria they have been chosen?
  (Mr Astbury)  Mr Campbell talked earlier about incident numbers. There is no one single criteria we used.

  48.  How many criteria were there then?
  (Mr Astbury)  We looked at the issues that coastguards need to tackle like more resources on the coast, greater flexibility, all of that. We looked at the private wire links in terms of the new technology centres. We considered things like the estate for example. Holyhead is a new building, a million pound investment during the last three years. Liverpool is an older building. The costs of switching the private wires on the new system to Holyhead are marginally cheaper than they are to Liverpool. All of these other things were taken into account. We accept that had we chosen Holyhead the same arguments on that side would have prevailed. Why did you not choose Holyhead, it is a new building, a million pound capital investment. So all of these factors were taken into account. We have to ensure a strategic spread. Had we based the closures on volume of incidents alone we would not have any coastguard stations in Scotland. To have all the Scottish VHF sites controlled from England and Wales given they are routed through BT lines would not have been an acceptable risk. So that is what we mean by strategic spread of coastguard stations.

  49.  Can you tell me why in your consultation document, which I have in front of me, page 16, paragraph 3.18 there is a paragraph about reducing the number of co-ordination centres. You say: "The co-ordination centres selected for closure were considered against the issues which are needed to be addressed", which is not very transparent. It is not very helpful for either myself or the people who work at the Liverpool coastguard station. It is not very helpful for them to understand your thinking when it is as opaque as that, is it? Do you accept the way in which you have made this decision is not at all clear to anybody that is concerned and you have actually caused a lot of upset and a fall in morale in the officers who are in these stations? They cannot understand the basis upon which you made your decision.
  (Mr Astbury)  I think there are two sides to that. The first one is that the decision was made not by me alone. There was a full consultation with HM Coastguard management board on it. There were discussions held between them and certain members of their middle management. When we announced the proposed closures there were discussions held on site with regional and deputy regional managers to discuss the implications and the rationale behind it. One was held at Liverpool, for example, and in the other centres at the time of the announcement on 17th December [2] last year.

  50.  Have you at any time set out to the staff and to the people who support the coastguard service, your volunteers, who also might be badly affected by an adverse impact on morale, your rationale and the criteria you used and the basis upon which you have come to the decision because what I am getting back from people is that you have not?
  (Mr Astbury)  I think we accept that the consultation document in that particular regard could have been a lot clearer.

  51.  Thank you for that. The other thing which might have been helpful is if you had set out details of all the co-ordination centres in your consultation document. The only ones you refer to specifically are the ones that you propose to close. There are no comparisons in your document with any of the other stations and that does not inspire confidence that this is a consultation. It looks more like a fait accompli. I want to move on to the NAO's Report, page 31, paragraph 2.21, where we are looking at co-ordination centres. It says here that "the financial savings generated by the proposed reduction in the number of co-ordination centres would be used to fund the introduction of new communications technology." If it was not for this need to introduce a new technology would you be closing these centres at all?
  (Mr Astbury)  Yes.

  52.  You would be anyway?
  (Mr Astbury)  Yes.

  53.  That is interesting because that is not what the NAO Report says on page 9, paragraph 1.4. This is a point already referred to at the end of Mr Campbell's comments. What impact will your merger with the Marine Safety Agency have on these plans to close co-ordination centres? Will it make it more acceptable, for example, to close other centres, apart from the ones you have identified already, because of the assets that you have now of the MSA which you now have to integrate?
  (Mr Storey)  I think we must remember that the MSA's role was a different role to that of the coastguard.

  54.  We are talking about having assets available, are we not? It may make sense, therefore, to change.
  (Mr Storey)  There was a complete review of the MSA done two or three years ago on the way they operated and it was reduced quite considerably at that time. As I see it under the review that I am doing, I am going through looking at what were the MSA offices and where we can put the two organisations together that will be done.

  55.  But you do not envisage that having any impact on your reasoning for deciding which of the stations to close?
  (Mr Storey)  No.

  56.  You are as clear now that you have chosen the right ones as you were then, are you?
  (Mr Storey)  Yes.

  57.  Can you turn to figure 11, page 28, which is a map of the stations. I am interested particularly, of course, in Liverpool and Holyhead. Would it not make equal sense to relocate Holyhead to Liverpool in terms of the geographical spread, not looking at other factors now? You could do it that way round and you would still have a sensible geographical spread, would you not?
  (Mr Storey)  Yes, you could probably put a case forward for that. The Holyhead coastguard station is the most modern of the two, built later than the Liverpool one and it is in a good strategic position.

  58.  There has been an increase in leisure and business traffic and use of the river and Liverpool Bay going on. Also, the port of Liverpool is increasing its tonnage throughput annually by quite significant amounts. You have got increased leisure activity in the bay. You have got two ro-ro ferry terminals being constructed on the Mersey. Liverpool airport's passenger numbers are going up every year. You have got the oil and gas exploration going on. Would it not be more sensible, in view of the likely increase in river and Liverpool Bay traffic, to have that centre in Liverpool instead of in Holyhead?
  (Mr Storey)  Not at all. I think we are talking about the reception that is required when there is a distress message given and it is picked up by radio aerial to the coastguard station. The coastguard station then find out where the incident is and then get task forces to deal with that incident. If there is an incident within the river confines usually the harbour authority would be dealing with it anyway in co-ordination with the coastguard.

  59.  Is it not at this point that the local knowledge becomes important and might you not lose that if you locate in Holyhead?
  (Mr Storey)  I do not think so. The people in Holyhead that will be there will be trained, if they do not have the knowledge, about the area that they have got to cover.


2   Note by Witness: The month was, in fact, November, not December. Back

 
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