The performance of the Department for Transport - Fleet News

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2264. Contingent liabilities are a necessary part of some of the complex contracts in whichthe Department is involved and, as the permanent secretary, Mr Devereux, pointed out, theNAO had accepted that the liabilities were correctly presented in the Department’saccounts. 99 We accept this point of accountancy procedure entirely. However, the scale ofthe known liabilities, plus the possibility of further large unquantified liabilities, representsa significant financial risk that could impact upon the ability of the Department to performits core functions. We recommend that the Department provides a risk assessment of itscontingent liabilities and attempts to give an estimate, or at least a range of possiblecosts, of its presently unquantified contingent liabilities.7 Conclusion65. The Department has made progress in a number of important areas over the past yearand indeed over the past decade. It has also established a new sense of direction in itslonger-term strategy. However, much remains to be done, including supporting economicgrowth, integrating local transport and tackling climate change. The future financialconditions are likely to make this even more challenging. The Department needs toensure that it focuses on what matters most to achieving its strategic objectives, whileserving the needs of the public and business. These issues cannot always be adequatelycaptured in a simple target. It is important, therefore, that the Department reportsprogress realistically.This is an embargoed advance copy.Not to be published in any form until00:01 on Thursday 4 March99 Department for Transport, Annual Report and Resource Accounts 2008–09, HC 454, July 2009, pp 376–380—theDepartment provides details of its contingent liabilities in Notes 31 and 32 to its Resource Accounts 2008–09.
23Conclusions and recommendationsLeadership1. Governments should give careful consideration to the frequency with which theychange ministers. The sensible development and implementation of transport policyrequires reasonable stability in the ministerial team. The Department for Transportshould not be used merely as a rung on the ministerial ladder. (Paragraph 9)2. We welcome the progress made by the Department towards developing a clear visionfor Britain’s transport infrastructure. The Government must ensure that thedecisions on future transport infrastructure, including the prospective North-Southhigh-speed rail line, are supported in future budgets. A stop-start approach totransport investment would undermine the credibility of the policy direction that hasnow been reached. (Paragraph 12)3. We commend the Secretary of State and the Permanent Secretary on giving up theirallocated cars, each of which previously cost over £18,000 per quarter. (Paragraph13)Implementation and outcomes4. The Department for Transport has achieved some important and positive outcomesas a result of consistent effort and increased government spending. The reduction incongestion and road deaths, and the increased use of public transport and freight onrail, are examples. The Department needs to maintain and build on theseachievements, and to address those areas where trends and performance have beenless satisfactory. (Paragraph 20)5. The Department for Transport should publish a comprehensive progress reportagainst the targets and schemes set out in its spending plan, Transport 2010,published nearly 10 years ago. It should do so in its response to this Report.(Paragraph 22)This is an embargoed advance copy.Not to be published in any form until00:01 on Thursday 4 March6. More than 10 years after the integrated transport White Paper, and almost 25 yearsafter the Transport Act 1985, which deregulated local bus services, integratedtransport remains an elusive objective outside London. Although the majority of busservices are privately provided, there is still a very large amount of public expenditureinvolved—some £2.5 billion in 2008–09. The Government must look hard at thebenefits to passengers that might be gained by more “strong government action” assuggested by Lord Adonis. We look forward to full implementation of the LocalTransport Act 2008 and trust that the Government will monitor progress andlegislate further if these powers prove insufficient. (Paragraph 26)7. We believe it would be helpful to understand the extent to which the nationalconcessionary travel scheme is responsible for the recent increases in bus use. Werecommend that the Department monitor separately the trends in fare-paying bus
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