Select Committee on Transport Minutes of Evidence

Supplementary memorandum submitted by the Department for Transport and the Agencies

  Thank you for your letter of 17 January seeking additional information on the Department's Memorandum to the Transport Committee of 13 January.

  Please find enclosed data covering the years 2002-03 and 2003-04 for the following:

—  Driving Standards Agency

—  Vehicle Certification Agency

—  Vehicle and Operator Services Agency (VOSA)

  With regard to the latter, VOSA, was established on 1 April 2003 so the figures for 2002-03 relate to the performance of the Vehicle Inspectorate.

  I understand that Officials have offered to provide you with the details of achievements against key targets during the period 2002-04 for the Driver and Vehicle Licensing Agency, which are also enclosed.

30 January 2006

SCHEDULE OF TABLES ON AGENCIES' PERFORMANCE AGAINST KEY TARGETS

DRIVING STANDARDS AGENCY

PERFORMANCE AGAINST KEY MINISTERIAL TARGETS AND MILESTONES

Key Ministerial Targets	Targets, Outturns and Achievements
Efficiency	2002-03	2003-04
Reduce sick absence (For 2005-06 this is part of the VFM plan)	Target 5% Outturn 5.7%	Target 5.7% Outturn 5.5%
Improving road safety
The national average practical car test waiting time will be no more than six weeks	7.8	9.6
Deliver a national programme of Arrive Alive presentations for 16-19 year olds	N/A	Target 6,000 Outturn 4,579
Increase the number of ADI check tests	N/A	Target 8,500 Outturn 9,791
Assure the quality of the practical driving test	N/A	N/A
Better customer service
Candidates to be satisfied with the overall level of service received from the Agency	Target 90% Outturn 93%	Target 90% Outturn 90%
Improve business customer satisfaction, including ADIs, to above the baseline 65%	N/A	40%
E-enable our services by using Automated Driving Licence Issue system to send pass results to DVLA, which enables drivers to automatically receive updated licences from June 2004	N/A	N/A
E-enable our services by introducing Advanced Speech Recognition for customers booking by telephone in August 2004	N/A	N/A
Following routing by our call handling system, 90% of calls to our booking offices will be answered by a human voice in no more than 20 seconds	91%	91%
Improve business and value for money
Provide off road motorcycle test facilities by 2008	N/A	N/A
Deliver the benefits outlined in the VFM plan achieving at least 2.5% of cast savings and 2.5% efficiency and productivity improvements	N/A	N/A
Achieve a target ROCE on statutory activities	Target 2.6% Outturn 14.7%	Target 6% Outturn -2.6%
Increase the basket of fees by target, within the cumulative RPI target	Target 1.7% Outturn 1.7%	Target 1.7% Outturn 1.7%

SUMMARY OF ACHIEVEMENTS AGAINST SERVICE STANDARDS

Standard	2002-03	2003-04
Theory Test
Keep 9.5% of all appointments	99.8%	99.7%
Give 95% of candidates an appointment at their preferred test centre within two weeks of their preferred date	92%	92%
Practical Test
Waiting times —car six weeks —vocational three weeks —motorcycle four weeks	7.8 3.2 3.3	9.6 4.1 3.1
Practical car test appointments will be available at 99% of permanent driving test centres within nine weeks	89%	55%
Keep 99.5% of appointments that are in place two days prior to the test appointment—Key target for 2005-06	98.9%	98.3%
98.75% of all appointments to be kept	98.01%	96.8%
95% of all calls to booking offices will access the call handling system without receiving an engaged tone	88%	79%
ADI
Practical test waiting time—five weeks	5.3	10
Keep 99.5% of PDI practical test appointments that are in place two days before the appointment for the test	N/A	97.6%
Keep 98.75% of all PDI practical test appointments	N/A	94.6%
Correspondence
97% of letters and e-mails answered within 10 working days	98%	98%
Letters and e-mails answered within 15 working days	Target 100% Outturn 100%	N/A
Bill payment
Undisputed and settled invoices to be paid within 30 days of receipt	Target 100% Outturn 99%	Target 100% Outturn 92%
Customer service
After a call has gone through our automated call handling system, we will answer 90% of all incoming calls by a human voice to booking offices in no more than 20 seconds	91%	91%
90% of calls to enquiry lines will be answered within 30 seconds	84%	92%
Refunds
95% of all refunds will be paid within 15 days of receipt of a valid claim	99%	99%

*  The target for 2004-05 was to deliver a six week national average car practical test waiting time from January 2005. The average for the year was 8.4 weeks but we did achieve 6.1 weeks in January.

PERFORMANCE AGAINST KEY MINISTERIAL TARGETS AND MILESTONES

	Targets and Achievements	Targets and Achievements	Targets and Achievements	Targets
	2002-03	2003-04	2004-05	2005-06
Improve business and value for money
To achieve break-even at the operating level	Not achieved (£484)	Not achieved (£137)	Not achieved (£362) Note extraordinary costs of £50k MG-Rover liability £110k DfT enforcement budget £127k MSC restructuring costs	N/A
To make a surplus on an operating basis	N/A	N/A	N/A	Target
To complete the roll-out of the integrated expense management system across the Agency and provide data to better support business development	N/A	N/A	Achieved	N/A
Deliver the benefits consistent with the value for money plan, achieving 2.5% cost savings and 2.5% efficiency and effectives improvements	N/A	N/A	N/A	Target
Better customer service
To issue at least 98% of approvals certificates error free	Achieved (99.06%)	Achieved (99.0%)	Achieved (99.07%)	Target
To deliver at least 90% of type approval certificates within eight working days	N/A	N/A	N/A	Target
To improve customer satisfaction rating year on year	N/A	N/A	(Not SoS target) 4.0	Achieved 4.1
To expand VCA's global presence in new territories.	N/A	N/A	N/A	Achieved—Opened VCA China. Completed feasibility study for VCA India
To have plans in place and on track to implement new approval procedures for HCV's and buses by 2007	N/A	N/A	Achieved	N/A
Better compliance and regulation
Develop the VCA strategy in relation to emerging technologies in vehicle testing by December 2005	N/A	N/A	N/A	Achieved—Strategy in place for Virtual Engineering
Carry out and enforce an annual programme of in-service emissions testing	Achieved	Achieved	Achieved	Target

OVERALL PERFORMANCE—SECRETARY OF STATE KEY TARGETS

SUMMARY OF KEY TARGETS 2003-04

Excellent Service to Our Customers
Key Target 1—Effectiveness and Quality Improvements
1.	Review of Performance Measurement: To put a project in place to review performance measurement strategy, including Performance Gain for the new agency starting in September 2003, to deliver a revised balanced scorecard for 1 April 2004.	Achieved
2.	Web-enabled Self-Service Package: To roll out the goods vehicle operator web-enabled self-service package and develop usage so that self-service applications increase to the point where 20% of GV80 vehicle change transactions are conducted online during the month of September 2003.	Not Achieved (see footnote)
3.	TAN Division Service Standards: To baseline data for TAN division service standards and set new thresholds for the key service standards, which start from the point where an application is received, by 31 March 2004.	Achieved
4.	Electronic Bus Registration: To pilot the fully electronic bus registration package (TransXchange) so that it is capable of integration with operator and local authority systems and is also available to bus monitors by 31 March 2004.	Not Achieved (see footnote)
5.	Online Document Processing at Traffic Area Offices: To pilot and implement scanning technology within Traffic Area Offices to deliver online document processing by 31 January 2004.	Not Achieved (see footnote)
6.	HGVTS Forward Booking Times: To improve Forward Booking Time performance so that by 1 January 2004 all Heavy Goods Vehicle test stations provide 95% of tests within 18 working days instead of the current target of 90%.	Achieved
7.	Automatic Number Plate Recognition (ANPR): To introduce a fully equipped Automatic Number Plate Recognition vehicle in each Traffic Area, making an effective contribution to our enforcement activity by 31 July 2003.	Achieved
8.	Vehicle Identity Check (VIC): To implement, embed and review the Vehicle Identity Check scheme by 31 December 2003.	Achieved
9.	Powers to Stop: To pursue plans to introduce Powers to Stop in six police force areas in England and Wales by 31 December 2003.
Key Target 2—Seamless Services to our Customers
10.	Electronic Services: To deliver against agreed milestones in the internal electronic services programme in order to achieve the . . . target of 100% electronic service capability.	Achieved
11.	Customer Satisfaction Index: To create a customer satisfaction index as a measure that can be used to report on annually by 31 May 2003.	Not Achieved (see footnote)
12.	TAN Division Presence in Wales: To establish a TAN division presence in Wrexham and Llantrisant by September 2003.	Achieved
13.	Digital Tachographs: To manage a programme of projects involving DVO agencies, DVTA (Driving and Vehicle Testing Agency) Northern Ireland and the police to ensure that the UK is ready for the introduction of Digital Tachographs according to European legislative timescales.	Achieved
Financial Performance
Key Target 3—Return on Capital
14.	To achieve an in-year indicative measure of +3.5%	Achieved
Key Target 4—Value for Money
15.	To develop a measure for the business as a whole.	Not Achieved (see footnote)
16.	Performance Gain: To deliver +2% Performance Gain in Enforcement.	Achieved
17.	Aggregated Cost Efficiency: To deliver +2% Aggregated Cost Efficiency (ACE) in Vehicle Testing.	Achieved
Continuing Improvement of Internal Management
Key Target 5—Improve Performance Management
18.	Baseline Data: Women and Ethnic Minorities: To contribute to Civil Service targets to increase the number of applications from ethnic minorities, and the number of women and ethnic minorities appointed on promotion to band 3 (level 4) or above by establishing baseline data for VOSA and setting an annual improvement target by 31 March 2004.	Not Achieved (see footnote)
19.	Diversity and Continuous Improvement Action Plans: To review and update the Diversity and Continuous Improvement Action Plans to reflect the merged organisation.	Achieved
20.	Sick Absence Management: To establish baseline data on VOSA's sick absence levels and set realistic improvement targets for each operating division of the Agency by 31 March 2004.	Not Achieved (see footnote)
21.	Risk Management: To establish within VOSA a standard corporate risk management strategy/process.	Achieved
Investment In The Future
Key Target 6—Long Term Development
22.	TAN/VI Merger: To successfully implement the agreed recommendations of the TAN/VI merger subgroups.	Achieved
23.	Commercial Vehicle Portal: To scope and produce an outline business case for the Commercial Vehicle Portal.	Not Achieved (see footnote)
24.	IT Infrastructure Transformation: To complete two of the initial building blocks in our IT infrastructure transformation by transferring to CITRIX "Thin Client" by 31 October 2003; and by piloting roll-out of mobile user data capture and enquiry devices by 31 March 2004.	Not Achieved (see footnote)
25.	MOT Computerisation: To have commenced roll-out of MOT Computerisation by 29 February 2004.	Not Achieved (see footnote)
26.	Roller Brake Testers: To have selected a preferred bidder for the supply and maintenance of Roller Brake Testers by 31 October 2003.	Not Achieved (see footnote)
27.	Estates and Facilities Investment Strategy: To develop a strategy for ongoing investment in estate and facilities.	Achieved

Notes:

17 of the 27 measures were met in year and a further two shortly afterwards—number 2 in early April 2004 and number 5 at the end of May 2004.

Measures 2 and 5.  Capacity testing carried out in June 2003 uncovered a need to upgrade TAN servers prior to commencing full roll out of self service and on line document processing. The necessary timescale for this to take place meant we were unable to achieve these targets by the due date. Self service was successfully launched on 8 April 2004 and has won three awards.

Of the eight others, decisions were made to delay or change what we were doing for pragmatic reasons.

Measure 11.      It was decided not to create a single measure. The individual indices for our commercial customers—(a) HGV/PSV Operators and (b) Drivers, Fitters and Presenters were available early in the financial year, albeit contained in two separate surveys. It was subsequently agreed that to maintain transparency these two separate indices will be used to form the baseline for on going research programmes.

Measure 15.      It was agreed with Advisory Board and DVO colleagues that a single measure was not the best way forward. In addition the outcome of the Gershon review meant we needed to put in place a range of measures to demonstrate delivered efficiencies.

Measure 18.      It was concluded that to set an annual improvement target for VOSA was impractical. During the year, emerging information from the 2001 Census showed there were concentrations of people from black and ethnic minority groups around the country—notably London, East Midlands and Liverpool areas. It is difficult for nation wide organisations like VOSA to target under represented groups. Where vacancies arise in these areas, VOSA uses appropriate and targeted advertising mediums to attract a wider range of people into applying. This approach is more realistic and achievable.

Measure 20.      The target for the VOSA Board to agree a realistic target for improvement by March 2004 was not achieved until May 2004. This was due to problems with the establishment of reliable baseline data on sickness absence, which was in turn due to the need to ensure the accuracy of data from the legacy systems operated by the former TAN and VI. A target for improvement could not be safely set until reliable baseline data was established.

Measure 24.      Roll out to operational areas was achieved on time. The upgrade of Headquarters was delayed due to a delay in obtaining GSI accreditation. Accreditation was achieved in early April 2004 and the upgrade completed in 2004-05.

Measure 25.      An independent review by Qinetiq and PA Consulting confirmed the system design was sound but recommended more stringent testing and trials to reduce the risk of faults, putting rollout in jeopardy. This required VOSA and SBS to renegotiate the PFI contract including financial re profiling and increased contract term. Full roll out will be achieved by end of March 2006.

Measure 26.      The decision was taken to suspend the project and re start it in another form. Following demonstrations of the equipment by the two companies, VOSA was able to accept either of them since neither fulfilled the specified requirements. However the exercise has enabled us to further develop our ideas on the specific requirements for roller brake testing.

VI—BALANCED SCORECARD—KEY TARGETS 2002-03

Excellent Service to Our Customers	RAG	Financial Performance	RAG
KEY TARGET 1 EFFECTIVENESS & QUALITY IMPROVEMENTS —Designated Premises —New Conditions of Appointment —RHF Funded Programme —Annual Test Forward Booking Times —Vehicle Identity Check KEY TARGET 2 EFFECTIVENESS, ROAD SAFETY & ENVIRONMENTAL STANDARDS ACTIVITY —Achieve a minimum of 7,654,880 PG Outcome Points. . . of which at least 13% for Education and Advisory work —Achieve:6,910 HGV Emission Checks 4,820 PSV Emission Checks70,500 LGV Emission Checks KEY TARGET 3 SEAMLESS SERVICE TO CUSTOMERS —VI Users Panel —Electronic Communications —Digital Tachographs —Scottish Criminal Justice Information Systems	G G G G G G G G G G G G G	KEY TARGET 4 ROC (RETURN ON CAPITAL) —To achieve an in-year indicative measure of +6% KEY TARGET 5 VALUE FOR MONEY To deliver: —2%+ Performance Gain in Enforcement —2%+ Aggregated Cost Efficiency (ACE) in Vehicle Testing —Develop a long-term financial strategy for VI	G G R G
Continuing Improvement of Internal Management	RAG	Investment in the Future	RAG
—Investors in People —Civil Service Reform —Sick Absence Management	G G R	KEY TARGET 7 LONG TERM DEVELOPMENT —Business Solutions Programme (BSP) —DVO	GG

Annex B

DRIVER AND VEHICLE LICENSING AGENCY

HISTORIC PERFORMANCE AGAINST SECRETARY OF STATE TARGETS

Secretary of State Target	Outturn
	2001-02	2002-03	2003-04
EFFICIENCY
Deliver overall 2.5% efficiency gain	Achieved (3.1%)	Achieved (2.5%)	Achieved (2.6%)
VEHICLE EXCISE DUTY ENFORCEMENT
Number of enforcement cases completed	Target 700,000 Outturn 799,800	Target 720,000 Outturn 820,000	Target 820,000 Outturn 971,000
VED Refunds/Rebates (95% in 30 days)	97.4	97.1	95.9
DOCUMENT ENTRY ACCURACY (% WITHOUT DVLA INDUCED ERROR)
Driving Licence & Vehicle Registration	Target 97 Outturn 97.6	Target 97.5 Outturn 97.6	Target 97.5 Outturn 97.5
DOCUMENT RESPONSE TIMES (95% WITHIN—DAYS)
*(98% WITHIN—DAYS 03-04)
Driving Licences: ordinary (11 days)	99.3	97.9	*96.9
Driving Licences: first applications and vocational (8 days)	97.5	96.9	*97.2
Vehicle Registration Documents (12 Days)	96.9	96.4	96.9
ENQUIRY RESPONSE TIMES (% ANSWERED)
Telephone (95% in 30 seconds)	97.7	96.8	96.9
Written (95% in 8 days)	99.3	99.2	98.6
E-mails (95% in 7 days)	99.8	97.3	78.5
Service hours during which customers have lines available to the call centre	Target 95 Outturn 99.4	Target 96 Outturn 99.7	Target 96 Outturn 99.5

---

---

Prepared 27 July 2006