Processed: 26-02-2010 19:09:54 Page Layout: COENEW [E] PPSysB Job: 442441 Unit: PAG1Ev 18<strong>Transport</strong> Committee: Evidence2 December 2009 Rt Hon Lord Adonis and Mr Robert Devereux<strong>the</strong> advice that we received was that if <strong>the</strong>re were notsignificant incentives given <strong>the</strong> high cost <strong>of</strong> carspowered by batteries, you would not get early takeup.That was a very significant new investment in ourlow carbon strategy and we hope it will lead to asignificant decline in road transport carbonemissions.Q126 Chairman: How significant will that declinebe? What do you expect to achieve by 2020?Lord Adonis: Our overall objective is to stabiliseemissions by 2020 and <strong>for</strong> <strong>the</strong>m to reduce <strong>the</strong>reafter,so to stop <strong>the</strong> growth in transport emissions that hastaken place over recent years, to stabilise <strong>the</strong>m and<strong>the</strong>n <strong>the</strong>reafter to be able to reduce <strong>the</strong>m but, <strong>of</strong>course, this does depend upon us being able robustlyto take <strong>for</strong>ward <strong>the</strong> sorts <strong>of</strong> measures that I havedescribed.Chairman: Thank you very much <strong>for</strong> coming andanswering our questions.This is an embargoed advance copy.Not to be published in any <strong>for</strong>m until00:01 on Thursday 4 March
Processed: 26-02-2010 19:10:26 Page Layout: COENEW [SO] PPSysB Job: 442441 Unit: PAG2Written evidence<strong>Transport</strong> Committee: Evidence Ev 19Memorandum from <strong>the</strong> <strong>Department</strong> <strong>for</strong> <strong>Transport</strong> (POD 01)In response to your letter <strong>of</strong> 17 September, please find below <strong>the</strong> answers to <strong>the</strong> Committee’s initialquestions and initial comments on <strong>the</strong> DfT Annual Report and Resource Accounts 2008–09. <strong>The</strong>Committee’s questions are in italics, with <strong>the</strong> DfT responses in roman.Expenditure, Resources and General1. Footnotes to <strong>the</strong> core tables A1–A9 (pp 214–232) provide some explanation <strong>of</strong> certain specific factorsaVecting spending, but <strong>the</strong>re is no general overview or explanation <strong>of</strong> o<strong>the</strong>r fluctuations in spending. <strong>The</strong>Committee would welcome <strong>the</strong> introduction next year <strong>of</strong> a commentary to explain trends and major changesupwardsor downwards in <strong>the</strong> figures contained in <strong>the</strong>se tables.<strong>The</strong> <strong>Department</strong> intends to review <strong>the</strong> content <strong>of</strong> <strong>the</strong> annual report more generally <strong>for</strong> 2009–10 and agreesthat a commentary on major trends would be useful.2. Previous concerns relating to <strong>the</strong> Shared Services Centre <strong>for</strong> financial and HR services have been, or arebeing addressed, according to <strong>the</strong> statement <strong>of</strong> Internal Control (pp 324–5). What lessons have been learnedso far, and what changes have been made?<strong>The</strong>re are a number <strong>of</strong> key lessons, particularly regarding governance and management <strong>of</strong> shared servicesand <strong>the</strong> shared service centre, that <strong>the</strong> <strong>Department</strong> has taken on board since <strong>the</strong> centre’s inception in 2007.<strong>The</strong>se high-level lessons learned can be summarised as follows:(i) Governance and Structure—<strong>the</strong> <strong>Department</strong> has recognised <strong>the</strong> importance <strong>of</strong> ensuring thatstrong governance and communications are maintained on an ongoing basis. In particular,ensuring that when <strong>the</strong>re are new services or units that go on to shared services <strong>the</strong>re is clarity aboutwho is doing what. We have subsequently streng<strong>the</strong>ned our governance structure so that <strong>the</strong>Accounting OYcer and constituent organisations have a more active role in setting direction andoverseeing <strong>the</strong> <strong>per<strong>for</strong>mance</strong> <strong>of</strong> <strong>the</strong> shared service centre. We have also put more emphasis oncommunications in order to address this issue.(ii) Expertise and Knowledge—<strong>the</strong> <strong>Department</strong> recognised from <strong>the</strong> outset that appropriate expertiseand knowledge at all levels would be critical to <strong>the</strong> success <strong>of</strong> <strong>the</strong> shared service centre, butsometimes it proved diYcult to apply suYcient resource to a problem to resolve it successfully. Wecontinue to work to ensure that <strong>the</strong>re is appropriate resource to deliver, and that if appropriateresource is not available <strong>the</strong>n <strong>the</strong> risks and consequences are understood and action taken.(iii) Change Control—in <strong>the</strong>se complex delivery mechanisms, change control is crucial to <strong>the</strong> ongoingdelivery <strong>of</strong> service. We have learnt to have a more systematic approach to managing changes, withclear reference back to <strong>the</strong> agreed design or “Blueprint” <strong>of</strong> services to maintain <strong>the</strong>ir integrity, anda more comprehensive control over <strong>the</strong> “end to end” impacts to ensure all associated materials,This is an embargoed advance copy.Not to be published in any <strong>for</strong>m until00:01 on Thursday 4 Marchtraining and knowledge sites are updated accurately.(iv) Ownership and Business Engagement—critical to <strong>the</strong> success <strong>of</strong> any such project is ownership by<strong>the</strong> relevant part <strong>of</strong> <strong>the</strong> business. We did not have suYcient engagement in <strong>the</strong> early design stages,and that created a major risk that <strong>the</strong> resulting services would not meet business requirements. Wehave tackled this through our work on streng<strong>the</strong>ning governance, so that pr<strong>of</strong>essionals frombusiness units have a direct role in overseeing <strong>the</strong> operation <strong>of</strong> services and prioritising changes.Following go-live in April 2007, and continually since, <strong>the</strong> internal controls and management processesoperating within <strong>the</strong> Shared Service Centre have been subject to a comprehensive level <strong>of</strong> scrutiny and reviewby internal audit. In 2008–09, none <strong>of</strong> <strong>the</strong> audits returned an “unacceptable” opinion. <strong>The</strong>y did, however,recommend a number <strong>of</strong> detailed areas where internal management controls should be improved. SharedServices has put in place a series <strong>of</strong> action plans to address all <strong>of</strong> <strong>the</strong>se audit recommendations andconsequently streng<strong>the</strong>n controls. At year end, a position had been reached where <strong>the</strong> internal controls overtransactions had reached acceptable levels. This level <strong>of</strong> control has been maintained.3. We could find no specific reporting <strong>of</strong> numbers <strong>of</strong> staV relocated under <strong>the</strong> Lyons review against targetswithin <strong>the</strong> Report. Could <strong>the</strong> department ei<strong>the</strong>r direct <strong>the</strong> Committee to <strong>the</strong> relevant section <strong>of</strong> <strong>the</strong> report, orprovide in<strong>for</strong>mation on staV numbers relocated against targets?<strong>The</strong> <strong>Department</strong>’s Lyons Relocation target was achieved in mid-2008, more than 18 months ahead <strong>of</strong>schedule. 62 staV were relocated away from London, compared to <strong>the</strong> target <strong>of</strong> relocating 60 posts by 31March 2010.
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