5 DEPARTMENTAL AGENCIES
84. Since holding our evidence session with the Secretary
of State on the Annual Report 2005, we have examined separately
the Department's Driver and Vehicle Operator (DVO) Group of Agencies
and the Highways Agency. We shall report on them in due course.
We wish nevertheless to touch briefly on a small number of issues.
Agency financial management and administration
85. Last year our predecessor committee expressed
concern about the extent to which the Department is in control
of its Agencies' finances.
86. The Department told us that the actions that
were agreed following the HM Treasury review of the Department's
financial management include "An enhanced group focus by
the Board on overall management of the Departments plans, budget
and financial risks, including all aspects of policy, resource
and long-term capital expenditure of agencies and NDPBs."[71]
In addition, there was to be the appointment at the earliest opportunity
of a professional group finance director at Director General level.[72]
87. We were told about the commitment to a stronger
group identity and improved financial governance for the executive
agencies of the Department. This is all very well. But what we
wish to know is what direct and demonstrable benefits a strong
group identity has brought for those using the Agencies' services
and the wider travelling public. The Department should explain
what these are in the Government's reply to this report.
Changes in working practices and staff morale
88. The move towards a stronger group identity will
require the Department and its agencies to share a single IT 'platform'.
This will include the introduction of a 'self-service' function
enabling employees to change their own details and to record absence.
89. We understand that there has been concern expressed
by the Trade Union Side about the impact of this so-called 'shared
services' agenda, and the introduction of 'self-serving'.[73]
The unions have particular concerns relating to staff not based
at desks and so have limited access to computers. We expect
the Department to minimise staff concerns about changes to working
practices in the Executive Agencies arising from the 'shared services'
agenda and the introduction of 'self-serving'. We would like the
measures taken to ameliorate staff concerns itemised in the Government's
reply to this report.
Estimates for Highways Agency road construction
costs
90. We have become increasingly concerned by regular
cost increases on the Highways Agency's road construction projects.
This is a poor record which we shall be considering in more detail
in our forthcoming report into the Executive Agencies.
91. It appears evident that there is still far too
much complacency on the part of the Highways Agency about cost
overruns on road construction projects. Overruns may adversely
affect the Agency's ability to implement other planned projects.
To ensure financial transparency, the Department must help the
Agency to identify which overruns are a result of accounting changes,
and which overruns are genuine costs beyond the budget. Given
the poor record of the Highways Agency in controlling road construction
costs, we are concerned that the Agency is to advise local authorities
on road procurement matters.[74]
92. During our evidence session with the Secretary
of State he made a commitment to act with increasing rigour on
costs, including road projects.[75]
We shall hold him to his word and expect him to act on this, including
"pulling the plug" on road projects where necessary.
We understand the complexity of many road schemes. But this is
no excuse for the production of grossly inaccurate financial forecasts.
The Department must work closely with the Highways Agency to ensure
realistic early assessments of project costs. We want the Department
to spell out what measures it is taking to correct this unacceptable
failure on the part of the Highways Agency.
Timetables for the electronic 'delivery' of Departmental
services
93. The Annual Report 2005 outlines a number
of developments in the electronic 'delivery' of the Department's
services. For example, 'Transport Direct' is a 'one stop shop'
website which is designed to provide access to a wide range of
travel information for public and private transport;[76]
lorry and public service vehicle operator self service; driving
test bookings; automated Driving Licence issue; and improvements
in car taxing.
94. Our inquiry raised concerns however. For example,
the electronic car taxing scheme faces significant delays. This
has been caused by the schedule of the MOT computerisation project
falling behind by a number of years. We welcome the move to
increase the electronic 'delivery' of the Department's services.
But Government's overall success in managing computerisation projects
is notorious; frequently promise is oversold, 'delivery' proves
disappointing, and schedules for completion are often not worth
the paper they are written on. The MOT computerisation project
has had its timetable revised. It is likely that we shall wish
to look in more detail at this aspect of the Department's activities
in the future.
Funding of 'Transport Direct'
95. We were surprised by the lack of clarity in the
Department's response to questions about the funding of 'Transport
Direct'. The Permanent Secretary told us that Transport Direct
was designed, built and operated in-house by the Department for
Transport.[77] The facts
however appear to be that Atos Origin IT Services UK Ltd received
almost £25 million to design, build and operate the 'Transport
Direct' portal between May 2002 and July 2005.[78]
The Department told us in its Supplementary Memorandum, received
after oral evidence was taken from the Secretary of State and
the Permanent Secretary, that "The specialist work of software
design and system build, and the day to day operation of the portal,
is carried out by Atos Origin under a contract awarded in 2002."[79]
96. The Permanent Secretary appeared not to be
aware that almost £25 million had been paid to Atos Origin
IT Services Ltd for the Department's 'Transport Direct' electronic
information system designed to offer the public a wide range of
travel information. We were very concerned that the Department
seemed not to know the details of so large a payment We would
like the Government's reply to this report to provide full details
of the procurement of 'Transport Direct'.
71
Ev 5 Back
72
Ev 5 Back
73
Correspondence from DfT Trade Union Side Back
74
Department for Transport, Departmental Annual Report 2005, Page
56, para 3.18 Back
75
Q 33 Back
76
Department for Transport, Annual Report 2005, page 198 Back
77
Q125 Back
78
http://www.dft.gov.uk/stellent/groups/dft_foi/documents/page/dft_foi_040168.pdf Back
79
Ev 46 Back
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