Further supplementary memorandum from
the Permanent Secretary, Department for Transport
In the course of giving evidence on the NAO's
report The Failure of Metronet, I was asked whether "anybody
had been sacked as a result of this debacle" (Q 36).
Later in the session (Q 125), I told the Committee
that "the executives at the time are no longer with the company"
. I was referring here to the evidence at Q 291 to the Transport
Select Committee on 7 November 2007, where the Administrator was
asked about compensation for Metronet Directors. He explained,
"we have made no payments for loss of office to any of the
five parties. ...we offered them a certain amount of, if you like,
retention, loyalty payment, which only worked for as long as they
stayed with the company and we wanted them to stay with the company,
but we have not paid them anything at all for breach of contract,
as is normal in these cases, and their claims will rank in the
estate."
As I also explained, on several occasions (Qq
2, 13, 45), while I regretted the loss which occurred, it is my
strong contention that the actions of my Department have resulted
in a better outcome for the taxpayer than would have been the
case under previous arrangements.
It is also the case, quite separately, that
the Department has a duty of care to its employees, under employment
and data protection legislation, and that any disciplinary and
employment issues would remain a matter of confidence and trust
between the Department and its employees.
16 November 2009
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