黑洞社区

Network Rail鈥檚 new chairman Peter Hendy has been told by the government to 鈥渄o what is necessary鈥� to get the infrastructure client鈥檚 spending programme back on track, as the chief executive of HS1 is drafted in to do a further review of the body.

According to the Summer Budget document, Hendy has been instructed to report to the Department for Transport by autumn this year with a plan as to how to get the rail investment programme 鈥渂ack onto a sustainable footing鈥� and make it a 鈥渕ore focussed commercial body.鈥�

黑洞社区 on the King鈥檚 Cross and Stratford station redevelopments, the government will also establish a dedicated body to focus on generating sales from public land and property in the rail network to help bring down the budget deficit.

Also revealed in the Budget documents, Nicola Shaw, chief executive of HS1, has been drafted in by the government to advise it on its approach to financing Network Rail and its long-term future. She will work closely with Hendy and is expected to finish advising the government before the 2016 Budget.

The government said it will 鈥渃hange the way it channels public money through the industry鈥� by directing it through train operating companies, rather than direct from central government coffers.

Also announced in the Budget document is the government鈥檚 plan to 鈥渃hange the way it channels public money鈥� into Network Rail, by directing it through train operating companies, rather than direct from central government coffers. It says the plan will 鈥渕ake best use of the scarce capacity on the rail network.鈥�

Hendy鈥檚 review follows a scathing report into Network Rail鈥檚 spending plan for 2014 to 2019 by regulator the Office of Rail and Road (ORR) in June, which said Network Rail had missed programme delivery targets and that some projects were already facing delays.

According to the ORR, Network Rail has missed 30 of its 84 milestones on projects to enhance the network, with renewal work also behind schedule. It said 77% of overhead line renewals works were behind schedule.