Committee for Regional Development Report on the Inquiry into Comprehensive Transport Delivery Structures Together with the Minutes of Proceedings of the Committee relating to the Report and the Minutes of Evidence Ordered by the Committee for Regional Development to be printed 18 September 2013 Report: NIA 80/11-15 REPORT EMBARGOED UNTIL COMMENCEMENT OF THE DEBATE IN PLENARY Session 2011-2015 Fifth Report Membership and Powers Membership and Powers Powers The Committee for Regional Development is a Statutory Departmental Committee established in accordance with paragraphs 8 and 9 of Strand One of the Belfast Agreement and under Assembly Standing Order No 48. The Committee has a scrutiny, policy development and consultation role with respect to the Department of Regional Development and has a role in the initiation of legislation. The Committee has 11 members, including a Chairperson and Deputy Chairperson, and a quorum of 5. The Committee has power: ■ to consider and advise on Departmental budgets and Annual Plans in the context of the overall budget allocation; ■ to approve relevant secondary legislation and take the Committee Stage of relevant primary legislation; ■ to call for persons and papers; ■ to initiate enquiries and make reports; and ■ to consider and advise on matters brought to the Committee by the Minister of Regional Development. Membership The Committee has 11 members, including a Chairperson and Deputy Chairperson, and a quorum of five members. The membership of the Committee is as follows ■ Mr Jimmy Spratt MLA (Chairperson) ■ Mr Sean Lynch MLA (Deputy Chairperson)1 ■ Mr Alex Easton MLA2 ■ Mr John Dallat MLA3 ■ Mr Stewart Dickson MLA4 ■ Mr Ross Hussey MLA5 ■ Mrs Dolores Kelly MLA ■ Mr Declan McAleer MLA6 ■ Mrs Brenda Hale7 ■ Mr David McNarry MLA8 9 ■ Mr Cathal Ó hOisín MLA 1 With effect from 02 July 2012 Mr Seán Lynch replaced Mr Pat Doherty as Deputy Chairperson 2 With effect from 01 October 2012 Mr Alex Easton replaced Mr Stephen Moutray 3 With effect from 23 April 2012 Mr John Dallat replaced Mr Joe Byrne 4 With effect from 06 June 2011 Mr Stewart Dickson replaced Mr Trevor Lunn 5 With effect from 23 April 2012 Mr Ross Hussey replaced Mr Roy Beggs 6 With effect from 10 September 2012 Mr Declan McAleer was appointed as a Member 7 With effect from 16 September 2013 Mrs Brenda Hale replaced Mr Ian McCrea 8 With effect from 26 September 2011 Mr Michael Copeland replaced Mr Mike Nesbitt 9 With effect from 06 February 2012 Mr David McNarry replaced Mr Michael Copeland i Report on the Inquiry into Comprehensive Transport Delivery Structures ii Table of Contents Table of Contents Membership and Powers i List of Abbreviations and Acronyms used in the Report iv Executive Summary 1 Introduction 2 Summary of Recommendations 3 Key Issues 4 Appendix 1 Minutes of Proceedings 13 Appendix 2 Minutes of Evidence 27 Appendix 3 Written Submissions 101 Appendix 4 Memoranda and papers from the Department for Regional Development (DRD) 213 Appendix 5 Memoranda and papers from others 227 Appendix 6 Research Papers 255 iii Report on the Inquiry into Comprehensive Transport Delivery Structures List of Abbreviations DRD Department for Regional Development ISNI Investment Strategy for Northern Ireland KPI’s Key Performance Indicators NIAO Northern Ireland Audit Office NITHC Northern Ireland Transport Holding Company PfG Programme for Government iv Executive Summary Executive Summary 1. The Committee for Regional Development (the Committee) has expressed their long- standing concerns with regards to transport structures in Northern Ireland. This has principally emanated from a complete absence of transparency in the case of the Northern Ireland Transport Holding Company (NITHC) operating under its brand name of Translink and averseness by the Department of Regional Development (DRD) to allow Translink to be effectively challenged and scrutinised by the Committee. 2. In undertaking the inquiry, the Committee hoped that it might unravel some of the common misunderstandings around the governance of NITHC/Translink, in particular with regard to its relationship with the Department and in the operation of the three subsidiary companies. Additionally, the Committee wished to see whether these structures were “fit-for-purpose” in delivering modern, integrated and efficient transport services to the Northern Ireland public. 3. Significantly, the conclusion reached by the Committee does not match the aspirations expressed at the outset of the inquiry. The Committee believes that the relationship between the Department and NITHC/Translink, often described by Members of the Committee as “cosy”, is not sufficiently challenging due to the departmental governance model and the absence of relevant and key experience and expertise within the Department. Although outside of the Committee inquiry, Members have received a recent presentation on the proposal to enter into an “agreement” in order to meet the requirements of EU Regulation 1370/2007. Members are not content that the proposed service level agreement meets with the requirement for a Public Service Contract defined in the regulations and that this could leave the Department open to infraction proceedings. 4. In its report on integrated transport,1 the Committee stated that they believed the Department’s decision not to proceed with the agreed independent agency model opportunity “significantly diluted” the potential for an “…more coordinated, integrated and functional transport model”. The Committee reaffirms this belief and is content that the Transport NI model is not the most appropriate structure and does not achieve the objectives espoused during the public transport reform process or in the Outline Business Case published by the Department. The Committee is not content that Transport NI has the expertise, skills or experience to direct NITHC/Translink or champion public transport. The Committee notes in recent correspondence from the Department2 that it proposes to “…procure an expert transport modelling and planning service” to aid in the development of local transport plans. The Committee believes that this is too narrow and will not address the dearth of skills, expertise and experience within Transport NI 5. The Committee does not believe that the levels of departmental scrutiny applied on NITHC/ Translink to be sufficient, particularly given the amounts of capital grants and subsidy that are provided from the public purse. The Committee has noted that NITHC/Translink accounts are audited by external auditors, as required under the Companies Act. However, NITHC/ Translink accounts are not open to scrutiny by the Northern Ireland Audit Office (NIAO) despite being in receipt of very significant levels of investment. The Committee believes this to be a significant weakness. 1 NIA 65/11- Inquiry into the Better Use of Public and Community Sector Funds for the Delivery of Bus Transport in Northern Ireland 2 SUB 663/2013 1 Report on the Inquiry into Comprehensive Transport Delivery Structures Introduction 6. At its meeting on 10 October 2012, the Northern Ireland Assembly’s Committee for Regional Development agreed to commence an inquiry into Comprehensive Transport Delivery Structures. 7. The Terms of Reference for the Report were agreed as follows: ■ To assess the current legal status of the Northern Ireland Transport Holding Company and its relationship with the Department for Regional Development; ■ To undertake a comparative analysis of the costs and subsidies to maintain the current and future public transport infrastructure and service delivery in the UK and Republic of Ireland; ■ To compare the policy objectives for provision of public transport in the UK, Republic of Ireland and in Europe; ■ To assess whether current structures and Transport NI proposals are the best suited for the efficient and effective delivery of public transport legislative and policy objectives; and ■ To optimise the organisational and delivery structures to improve the efficiency and effectiveness of service delivery 8. On the 12 November 2012 the Committee inserted signposts in the Belfast Telegraph, Irish News and News Letter seeking written evidence on the Inquiry by 18 January 2013. The Committee also wrote to key stakeholders with the same request. 9. During the period covered by this Report the Committee considered written submissions from in excess of 15 individuals and organisations. A copy of submissions received is included at Appendix 3. 10. The Committee also heard oral evidence at meetings between the 10 April 2013 and 8 May 2013 from the following organisations: ■ The Department for Regional Development ■ The Northern Ireland Transport Holding Company/Translink ■ Community Transport Association ■ Professor Austin Smyth ■ The Office of Fair Trading ■ The Consumer Council for Northern Ireland ■ The Transport Planning Society ■ The Transport Salaried Staffs’ Association ■ The Northern Ireland Transport Working Group ■ Belfast Taxis Community Interest Company 11. The relevant extracts from the Minutes of Proceedings are included at Appendix 1. Minutes of the evidence extracts are included at Appendix 2. The Committee would wish to thank all those who provided both written and oral evidence. 12. Whilst the Committee did not undertake any Study visits specifically in respect of this inquiry, those undertaken during the earlier Inquiry into the Better Use of Public and Community Sector Funds for the Delivery of Bus Transport in Northern Ireland helped inform Members of the potential structures