RSSB – STRATEGIC REVIEW
A MEMBERS AND STAKEHOLDERS
CONSULTATION
19 November 2012
Contents
Foreword
Introduction
Proposals
By the Chairman of RSSB
3
1
Introduction
4
1.1
Background and executive summary of what is being consulted
4
1.2
Summary of proposals
5
1.3
Nature of Strategic Review and working methods
6
1.4
Structure of document
7
1.5
Means of responding to the consultation
7
1.6
Next Steps
8
2
Detailed proposals on which views are sought
8
2.1
Part One: Budget for 2013/14 –consultation for RSSB members
8
2.2
Part Two: Preliminary Consultation on a number of general
9
proposals for members and stakeholders
2.2.1
Proposals for significant review process to support the
9
development of the Strategic Business Plan for 2014/19
2.2.2
Proposal to have a five year funding settlement for RSSB for
10
the years 2014 to 2019
2.2.3
Changes in the way that members fees are established and
11
reviewed
2.2.4
Proposals for changes to the Constitution Agreement
11
2.2.5
Recognition of the leadership role of the Rail Delivery Group
13
2.2.6
Reduced role for the Office of Rail Regulation (ORR) in
14
supervising the governance of the company
2.2.7
Other considerations
14
Implications
3
Implications of review for RSSB, its members and stakeholders
15
Annexes
A
Consultation questions
16
B
Draft Amendment to Section 2 of the Constitution Agreement
23
(Track changed version)
C
List of subcommittee members
29
D
List of activities added or subtracted from 2003 onwards
30
RSSB Strategic Review Consultation 19.11.12
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RSSB - Strategic Review
A members’ and stakeholders’ consultation
Foreword
By the Chairman of RSSB
The purpose of this consultation is to seek members’ and other stakeholders’ views on a number of
important changes that are being considered for RSSB, and to seek members’ approval for the
proposed budget for members’ funded activity for 2013/14.
RSSB will be 10 years old in 2013 and your board has decided that it is time to take stock of what
RSSB does and can do to support the industry. Much has changed in those 10 years and RSSB has
contributed in many ways through the provision of services to its membership, the rail industry, ranging
from the collection and analysis of safety related data, to facilitating the development of the soon to be
publish industry Rail Technical Strategy. No organisation can stand still and your board considers that
now is the time to look long and hard at what changes might be made to better equip the company to
support the industry in its next decade.
The consultation set before you and its proposals are recommended to you by the board, which
represents all parts of the membership, the company, and the independent non-executive directors. I
believe that making the proposed changes to the constitution, the means by which RSSB is funded,
and following them through with organisational changes to match the tasks ahead; will enhance the
relationship between RSSB and the rail industry’s overall performance, as well as providing the staff
and management of RSSB with challenging and satisfying roles within the sector.
I commend the various recommendations to you, but much more importantly, I encourage you to
respond to the consultation and to express your views about what RSSB does and how it should
change in the future.
Paul Thomas CB
Chairman
RSSB
RSSB Strategic Review Consultation 19.11.12
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1.
Introduction
1.1
Background and executive summary of what is being consulted
As RSSB approaches its 11th year it is firmly established within the industry and
earned high regard in Great Britain and overseas for its contributions to support the
development and refinement of rail industry safety and standards, and as a home for
valued cross industry research. Meanwhile its expertise is increasingly sought to
undertake or facilitate cross industry work to support other business improvements or
challenges, as can be seen from the list of activities added since 2003 in Annex D.
The board of RSSB – which includes the most senior representatives of all sections of
the industry - consider that the strengths of the company include its independence, the
range of competencies and experience it can draw on, its facilitation skills and the
cross industry governance structures it has developed. These strengths offer the
industry an invaluable resource as it tackles system wide and long term challenges in
the future.
Additionally other parts of the industry have recognised the need to work effectively
with RSSB to achieve the potential of its organisation and realise the value of its
strengths.
At the same time, much has changed across the industry and the board considers that
RSSB can build on its strengths and evolve to better support the industry over the next
decade. Accordingly the board of RSSB initiated a strategic review of the company in
July 2012. The review has reached a sufficiently advanced stage to consult members
and stakeholders on a number of proposals to clarify RSSB’s role, initiate changes, and
to confirm those features of RSSB where no change is proposed.
One of the recent changes in the industry is the creation and formalisation of the Rail
Delivery Group (RDG), which seeks to establish an authoritative leadership voice on
behalf of the rail industry. Given RSSB’s current primary purpose, and the activities of
the company, your board therefore considers that it is timely and appropriate to clarify
the relationship with the RDG
Although there are many cases of stakeholder engagement and buy in to RSSB, there
are areas and levels of the industry where this is not the case. The board therefore
wishes to explore how industry ownership of the RSSB’s work can be improved.
RSSB Strategic Review Consultation 19.11.12
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In order to plan with confidence for the five year period from April 2014 to March 2019
the company will produce a Strategic Business Plan and long term funding proposals.
The responses to this consultation and the consideration by the board will lead to
proposals to change the Constitution Agreement, a draft Strategic Business Plan and a
funding proposal for the five year period from April 2014. These will be consulted with
members during the course of 2013. Changes to the Constitution Agreement will also
require the agreement of the Office of Rail Regulation.
At the same time the RSSB board is proposing keeping members’ funding at the
2012/2013 level for 2013/2014 and this consultation explains that and seeks members
support.
1.2
Summary of proposals for consultation
The proposals that are put forward for members’ and stakeholders’ review and
comments are split into two although both parts are linked. The first part (Part One) is
a formal consultation for RSSB members, and has a response date of 20th December
2012. The second part (Part Two) is a preliminary consultation on a more general set
of proposals relating to the way the company works, its functions and services and the
constitution agreement. Views from all stakeholders are invited and are being sought
by the 31 January 2013. Responses to the second part of the consultation will be used
to inform proposals which will be brought forward in a formal consultation later in 2013
as the Strategic Review of RSSB progresses to conclusions.
1.2.1 Proposal for members funding for 2013 – 2014 (Part One)
The Part One proposal is for there to be a member’s funding settlement at the same
cash level as for 2012/13 – i.e. £19.1m. Taking the current financial year and the next
financial year together, the board is of the view that it can maintain members’ fees at
the same cash level for the second year. It believes that this will enable time and
space to be created for the balance of the Strategic Review to be concluded which
could give rise to changes to the baseline for the period 2014-2019 and potentially in
the way that RSSB is funded for core members’ services during that period.
RSSB Strategic Review Consultation 19.11.12
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1.2.2 Proposals relating to the Constitution Agreement and activities of RSSB (Part
Two)
(a) The first element of the Part Two proposals involve changes to the Constitution
Agreement to clarify the purpose of RSSB, where a new Primary Objective is
discussed which emphasises RSSB’s role in supporting its members and better
reflects the breadth of what RSSB does today. There is significant change
discussed around the ‘principles of operation’, and it is also proposed to introduce
a distinction between those functions where it fulfils a key industry role, and those
functions where it carries out or supports cross industry activity because it’s
members choose to do so through RSSB.
(b) Other changes to the Constitution Agreement include reducing the degree of
control that ORR has over company governance (subject to ORR board approval)
and a number of other changes that either represent good housekeeping or
recognise external changes.
(c) In support of the new Strategic Business Plan the board is initiating a significant
stakeholder review of all of RSSB products and services, to be overseen by a
board subcommittee.
(d) Members’ and stakeholders’ views are also being sought on a proposal to change
the means of funding RSSB so that both members and RSSB can plan their
activities over a longer period.
(e) A number of other non material housekeeping changes are being developed for
the Constitution Agreement including the addition of the Rail Accident Investigation
Branch (RAIB) and RDG as ‘stakeholders’ in order to bring the Constitution
Agreement up to date.
1.3
Nature of the RSSB Strategic Review and method of working – progress to date
1.3.1 The board set up the Strategic Review in July 2012 to address and consider the issues
raised in 1.1. above. It has conducted the review through a subcommittee of the board
established for the purpose. Given that one of the objectives of the review was to
establish what the relationship is with the Rail Delivery Group, the RDG was invited to
nominate people onto the subcommittee.
A full list of members of the board
subcommittee is included at Annex C. The subcommittee’s purpose is to steer and
oversee all of the work associated with the review leading to recommendations to the
board.
RSSB Strategic Review Consultation 19.11.12
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1.3.2 The method of working adopted by the subcommittee includes meeting every month,
initiating specific work streams, and taking opportunities to capture feedback through
other events or activities that are happening anyway. At each board meeting a report
has been made to board directors on progress with the review. At the subcommittee
meeting on the 19th October, it was agreed that the review is sufficiently far advanced
for its interim findings and recommendations to be consulted with members and
stakeholders. All of the proposals set out in this document were presented as
recommendations from the subcommittee to the RSSB board meeting on 8th November
2012
1.3.3 Additionally the subcommittee has met with the Office of Rail Regulation (ORR) to
obtain preliminary regulatory support for the general principles of this consultation.
1.4
Structure of document
This document sets out the background to the review and the issues to be consulted
upon in Section 1, an explanation of the basis of the proposals on which consultation
questions are asked in Section 2. Section 3 summarises an assessment of what the
implications of the various proposals are for RSSB members and other stakeholders.
The annexes include A) Consultation questions and response forms B) Draft
amendments to Section 2 of the RSSB Constitution Agreement, C) a list of the
members of the RSSB board subcommittee for the Strategic Review and D) a list of
activities that have been added to or subtracted from RSSB by the board or members
since the company was established in 2003.
1.5
Means of responding to the consultation
1.5.1 Part One of the consultation is for RSSB members who are asked to respond by 20th
December 2012. Responses can be submitted using the first form provided in Annex A
for this purpose.
1.5.2 Part Two of the consultation is for RSSB members and stakeholders, all of whom are
asked to respond by the end of January 2013. Responses can be submitted using the
second form in Annex A.
Should you wish to discuss or seek further clarity on either part of the consultation prior
to responding – please contact Anson Jack, Deputy Chief Executive RSSB, who will be
please
to
speak
with
you.
He
can
anson.jack@rssb.co.uk
RSSB Strategic Review Consultation 19.11.12
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be
contacted
initially
by
email
at
1.5.3
All written responses should be sent to the Company Secretary. It is preferable to
receive consultation responses electronically, and the response forms attached to
Annex A are provided for that purpose. However, if consultees wish to respond in any
other form, these will still be considered provided they are received by the close of
business (1700) on the dates identified.
1.5.4
1.6
The addresses for responses are:
e-mail
elizabeth.fleming@rssb.co.uk
Post
Liz Fleming
Company Secretary
RSSB
Block 2, Angel Square
1 Torrens Street
London
EC1V 1NY
Next steps – what will happen to consultation responses
1.6.1 Part One consultation and responses are expected to lead to a reserved resolution of
the board to agree the members funding for 2013/14 at the board meeting in January.
1.6.2 Part Two responses will be assembled and considered by the board subcommittee at
its meeting in February 2013. Together with the results of the products and services
review and other work streams, this will lead to detailed proposals for change in the
second half of 2013. These will be captured in a draft Strategic Business Plan,
proposals to change the Constitution Agreement and internal changes within RSSB to
make adjustments to deliver what is required.
2.
Detailed proposals on which views are sought
2.1
Part One: Budget for 2013/14 – consultation for RSSB members
2.1.1 The proposed member funding for 2013/14 is £19.1m which is the same as for the
current year 2012/13. Although there are no proposals to cut existing services or
resource levels, and the majority of RSSB member funded costs consist of staff, it
would normally be proposed that an increase to be applied – at or just below the rate of
inflation. However, in light of the Strategic Review, the plan to have a thorough review
of all RSSB products and services during the first half of 2013, and the desire to avoid
RSSB Strategic Review Consultation 19.11.12
8
a prolonged debate around one year of funding for RSSB, the board has decided to
propose a standstill budget for 2013/14.
2.1.2 It is too soon to anticipate any restructuring costs consequent upon the Strategic
Review and therefore no budget provision will be made for them. However, the board
considers that if any efficiencies beyond those already assumed in the current year can
be used in 2013/14 it will be able to sustain a zero increase in the members’ levy in the
next financial year.
2.1.3 In summary taking a two year view of RSSB’s budget for 2012/13 and 2013/14 and
maintaining Member levies at the same cash level for those two years would create the
space and time to deliver a new Strategic Business Plan, restructure the business and
establish a baseline for longer term funding from 2014. The proposal from the RSSB
board for the members levy for 2013/14 is therefore the same as for 2012/13 – at
£19.1m.
Q1 Do you support the board proposal to set the members fees for 2013/14 at £19.1m
which is the same level as for 2012/13?
2.2
Part Two: Preliminary consultation on a number of general proposals for
members and stakeholders
2.2.1 Proposal to have a significant review process to support the development of the
Strategic Business Plan for 2014/19
Between now and the establishment of the Strategic Business Plan for 2014/2019 the
board is going to initiate a significant review of all of RSSB’s products and services to
enable stakeholder groups and the board (through the review sub-committee) to satisfy
themselves that each represents value for money and to decide whether they continue,
change or cease over the period of the new plan. This would create a baseline for the
Strategic Business Plan and any potential organisation changes. The board’s proposal
to have a five year funding settlement, set out in 2.2.2 below is predicated on having
this review, to enable members representatives in the various RSSB stakeholder
groups to participate in clarifying what products and services RSSB will plan to deliver.
At the same time an internal review is being undertaken within RSSB to explore ways
of improving processes, stakeholder engagement and overall efficiency. The results
from the stakeholder and internal reviews will be used to inform decisions and
proposals to change the way that RSSB operates, and may lead to organisation
changes.
RSSB Strategic Review Consultation 19.11.12
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Q2. If members or stakeholders have any comments or suggestions as to how the
review of products and services may be conducted they are asked to make them
in the response to this consultation.
2.2.2 Proposal to have a five year funding settlement for RSSB for the years 2014 to
2019
(a) RSSB is a long term player in the industry and supports decisions on long term
issues. The present annual budget process does not support long term planning and
is out of alignment with the funding cycles of RSSB’s principle funders. During the
six years when members have funded RSSB the annual budget process has not led
to any material changes of either products or funding, but has consumed
considerable management and member time. Your board considers that this is not
an appropriate mechanism for an entity whose principle contribution to the industry
is to provide expertise and services to underpin key industry initiatives and decisions
that impact over a long time horizon.
(b) It is therefore proposed that RSSB moves to a mechanism that enables both
members and RSSB to ‘plan their businesses with a reasonable degree of certainty’.
Investment in competencies, capabilities, tools, models and systems to support the
industry across the range of functions confirmed through this review would be
incentivised if RSSB were able to plan over a period longer than 12 months.
(c) The proposal on which the board seeks members’ and stakeholders’ views can be
summarized as follows:
i.
The Strategic Business Plan would be established with a revised funding
mechanism, whereby aggregate member funding for RSSB is broadly
fixed for the five year period, with an appropriate efficiency assumption
(reflecting the nature of the cost base and the results of this review).
ii.
The board would scrutinise and review the expenditure budget each year
to sign off the executive’s proposed priorities and allocation of resources
iii.
Member fees would be automatically adjusted each year through a price
variation mechanism (including efficiency assumption). A re-opener would
allow change if certain defined circumstances applied – such as a major
shock to the company or external events meant that significant changes
to services (up or down) were appropriate.
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(d) This 5 year funding plan would be based on the output from the significant review of
RSSB products and services as outlined in section 2.2.1.
Q3. Members are asked to comment in principle on whether they support the
proposal to have a five year financial settlement with annual scrutiny and if so,
whether they support the proposals in 2.2.2?
If this proposal is generally supported, the board will prepare changes to the CA and a
Strategic Business Plan that is based on such an approach for consultation during the
second half of 2013.
2.2.3 Change the way that members fees are established and reviewed if the proposal
set out in 2.2.2 above is adopted
If members agree that the company should have a five year financial settlement with its
members, the basic arrangement would be to create a baseline and a set of rules
associated with changing the funding during the five year period.
However, in any five year period it is reasonably certain that there will be a significant
amount of churn among franchised train operators and also potentially among the other
groups of members. In this respect it is important to have a fair and equitable means of
making changes to members’ fees when there are changes in the make-up of the
membership.
In the event that there is general support for the proposals set out in 2.2.2, the
subcommittee for the Strategic Review will examine a number of options for member
funding and consider further consultation on these options before making a proposal to
change the constitution. No particular questions are asked of members at this stage,
but if there are any observations about the possible mechanism that could be used,
they would be considered by the subcommittee.
2.2.4 Proposals for changes to the Constitution Agreement
All of the proposals set out below are expressed in general terms. Although there is a
draft track changed part of the Constitution Agreement set out as Annex B, this
consultation is all about the general principles set out below. The responses to this
consultation will be used to finalise proposals for a full overhaul of the Constitution
Agreement which will be developed and consulted in the second half of 2013. They do
represent a set of principles which the board of RSSB supports and would propose to
RSSB Strategic Review Consultation 19.11.12
11
implement, subject to the various approvals that will be require to make the formal
changes.
It is proposed to amend the Primary Objective, Principles of Operation and
Functions of RSSB to reflect better how RSSB supports the industry today and
clarify how this can change as RSSB develops. A draft set of possible
amendments is set out in track changed format in Annex B and reflects the
general recommendation that is being made by the board.
The proposals are summarised below and detailed text is included in Annex B.
Primary Objective. Taking account of all the changes that have occurred in the
industry, the experience of the company, and recent developments, the proposed
changes to the Primary Objective are designed to achieve the following:
(a)
Clarify that RSSB’s primary objective is to support the industry (members) in the
fulfilment of their objectives
(b)
Recognise that RSSB’s functions support the industry in economic as well as
safety objectives (which they already do).
Principles of Operation. The updates to the Principles are designed to achieve the
following:
(c)
Eradicate a number of principles that were originally lifted from the Office of Rail
Regulation’s Section 4 duties (Railways Act 1993) but do not seem to be
necessary or particularly appropriate to RSSB as it is today
(d)
Identify a number of areas where, notwithstanding RSSB’s ‘support’ purpose, it is
either accountable to members or expected to show leadership within the
industry
(e)
Create a formal relationship with the Rail Delivery Group, by identifying that it will
‘take account of relevant strategies of the RDG’.
Functions of RSSB. The update to the Functions of RSSB creates the opportunity for
members and the company to be much clearer about why RSSB is doing something
and what governance applies to it. The main change is proposed is to generalise
functions into two categories:
(f)
Those functions that RSSB shall do
(g)
Those functions that RSSB may do.
The ‘shall functions are those which would require a change to the Constitution
Agreement to cease (which would in turn require ORR approval), while the functions
that RSSB ‘may’ do are fully under the decision making governance of members,
RSSB Strategic Review Consultation 19.11.12
12
including the board. In addition, all products and services delivered by RSSB would be
identified against the relevant function or functions, be listed on the RSSB web site,
and also be allocated to an explicit RSSB facilitated cross industry governance group.
Those products and services provided generally for the industry and those that are
provided for non RSSB sponsored governance group would be allocated to the board.
Included within the ‘may’ functions would be the ability to establish a ‘scheme’ that is
funded separately by subscriptions payable by members of that scheme. This enables
parties who are not members of RSSB to participate in and fund collaborative industry
activities, without creating cross subsidy. A current example of such a scheme is
CIRAS (which has London Underground Limited as members although they are not
RSSB members), and a potential future scheme would be the management of the
emerging industry Supplier Approval Scheme
Q4. Do you agree with the general approach proposed in the outlined changes to
Section 2 of the RSSB Constitution Agreement?
Q5. Do you have any specific comments on the track changed version of Section 2
attached
to this consultation? If so please insert them in the form provided in
Annex A?
2.2.5 Recognise the leadership role now occupied by the Rail Delivery Group (RDG)
The RSSB board has welcomed the creation and formalisation of the RDG, and as part
of this invited RDG to make nominations onto the board subcommittee that is steering
the Strategic Review. There are four ways that RSSB will recognise the leadership role
of the RDG. Through:
(a) inserting into the Constitution Agreement the ‘principle of operation’ that states that
RSSB will ‘take account of relevant strategies of the RDG’
(b) listing RDG as a Stakeholder in the Constitution Agreement, which means that they
will be consulted on relevant RSSB strategies under development (such as this
current Strategic Review).
(c) recognising RDG as a cross industry leadership group, who can directly, or through
its sub groups sponsor research and development or other RSSB activity in support
of shared industry objectives (subject to resources)
(d) the recognition that the leadership members of RDG are able to, through their own
company roles, influence the nominations of the Non Executive Directors that are
RSSB Strategic Review Consultation 19.11.12
13
placed on the board by Network Rail, Passenger Train Operators and Freight Train
Operators.
At the same time, the RDG representatives on the steering group for the Strategic
Review, all members of the steering group, including ORR and DfT representatives, the
RSSB board and all other parties that have been consulted to date, have expressed
the view that RSSB should remain an independent body, owned by its members but
not controlled by any individual member or section of the industry.
Q6
Do you support the way that the RSSB board proposes to establish and
recognise its relationship with the Rail Delivery Group?
2.2.6 Reduce the role of the Office of Rail Regulation (ORR) in supervising the
governance of the company
It is generally agreed that RSSB is, after 10 years sufficiently mature to enable the
directors to undertake the normal supervision functions that a company has.
Consequently the subcommittee, which includes representation from the ORR
recommends that:
a) ORR would no longer approve: the appointment or dismissal of executive directors
(replaced by a unanimous decision of all non-executive directors); the appointment
or dismissal of non-industry non-executive directors (replaced by a unanimous
decision of all other directors); conflicts of interest (which would be left to directors
and audit committee); and other minor procedural matters
b) ORR would continue to be: an observer on the RSSB board and other committees;
the last line of approval for both the Constitution Agreement and the Code, and
the Constitution Agreement would require the annual report as to how RSSB is
delivering its Primary Objective for members to be submitted to the ORR as well.
This has been discussed and agreed in principle with the ORR representative on the
subcommittee but will ultimately require the approval of the ORR board.
Q7
Members and stakeholders are asked to comment on whether they would
support a reduced role for the ORR in the governance of the company as
outlined in this section 2.2.6
2.2.7 Other considerations
This consultation is driven by those issues that the review has identified and the
proposals that have been developed to address them. During the period leading up to
RSSB Strategic Review Consultation 19.11.12
14
the production of the draft business plan for 2014/19 there is an opportunity to consider
further issues. The subcommittee is already exploring ways to improve Industry/RSSB
communication and the structure of the cross industry groups facilitated by RSSB, and
would welcome any further suggestions or proposals as to areas for potential review.
Q8
Given all of the proposals set out above, is there anything that you consider to
be inappropriate, or are there any additional suggestions that you would wish to
add?
3.
Implications of review for RSSB, its members and stakeholders
The view of the RSSB board is that the changes proposed in this consultation
document will help to achieve the following:
a)
It will update and more accurately reflect the purpose of RSSB which will help to
enhance the buy in for all stakeholder groups;
b)
It will confirm (or amend) all current activities, products and services and provide
clarity about how they can change through members decisions;
c)
It creates the platform for a close working relationship with RDG while recognising
wider RSSB membership and RSSB’s independence
d)
It creates incentives for improvements in efficiency within RSSB and as between
members and RSSB; and
e)
It will create an up to date baseline and platform for organisational development
and investment.
Overall it will reassure members and wider stakeholders that going forward RSSB will
be appropriately equipped to fully support its members co-operation to achieve their
industry objectives.
RSSB Strategic Review Consultation 19.11.12
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Annex A
Consultation questions
Part One: For RSSB members only – responses made by the 20th December
2012 will be taken into account.
Q1.
Do you support the board proposal to set the members fees for 2013/14 at £19.1m which
is the same level as for 2012/13?
Please note that this could still lead to changes in individual member’s fees relative to 2012/13
due to changes in member’s turnover relative to other members.
RSSB Strategic Review Consultation 19.11.12
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RSSB STRATEGIC REVIEW – A MEMBERS AND STAKEHOLDERS CONSULTATION
PART ONE:
PROPOSAL FOR MEMBER FUNDING 2013/14
To:
Elizabeth Fleming
Company Secretary
RSSB
Block 2, Angel Square
1 Torrens Street
London, EC1V 1NY
elizabeth.fleming@rssb.co.uk
From:
Date:
CONSULTATION RESPONSE FORM – PART ONE (MEMBERS ONLY)
Please ensure that this questionnaire and all comments (including Nil Returns) are returned to
arrive at the address shown above before 17:00 on 20 December 2012.
Q1.
Do you support the board proposal to set the members fees for 2013/14 at £19.1m which is the
same level as for 2012/13?
Please note that this could still lead to changes in individual member’s fees compared to 2012/13 due to
changes in member’s turnover relative to other members.
PLEASE TICK THE BOX WHERE APPROPRIATE:

Yes
No

Please indicate below, reason for negative response.
No comment

Additional comments:
Signature: ...............................................................
Date: .........................................
Print Name and Title: .................................................................................................................
RSSB Strategic Review Consultation 19.11.12
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Intentionally Blank
RSSB Strategic Review Consultation 19.11.12
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Part Two - for RSSB members and stakeholders – responses made by 31st
January 2013 will be considered by the RSSB board
Q2.
If members or stakeholders have any comments or suggestions as to how the
stakeholder review of products and services may be conducted they are asked to make
them in the response to this consultation.
Q3.
Members are asked to comment in principle on whether they support the proposal to
have a five year financial settlement with annual scrutiny and if so, whether they support
the proposals in 2.2.2 of this consultation document?
Q4.
Do you agree with the general approach proposed in the outlined changes to Section 2 of
the RSSB Constitution Agreement?
Q5.
Do you have any specific comments on the track changed version of Section 2 of the
Constitution Agreement attached to this consultation document (See Annex B)? If so
please insert them in the form provided in Annex A?
Q6
Do you support the way that the RSSB board proposes to establish and recognise its
relationship with the Rail Delivery Group?
Q7
Members and stakeholders are asked to comment on whether they would support a
reduced role for the Office of Rail Regulation in the governance of the company as
outlined in section 2.2.6 of this consultation document.
Q8
Given all of the proposals set out above is there anything that you consider to be
inappropriate, or are there any additional suggestions that you would wish to add?
RSSB Strategic Review Consultation 19.11.12
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RSSB STRATEGIC REVIEW – A MEMBERS AND STAKEHOLDERS CONSULTATION
PART TWO:
PRELIMINARY CONSULTATION ON A NUMBER
OF GENERAL PROPOSALS
To:
Elizabeth Fleming, Company Secretary
RSSB
Block 2, Angel Square
1 Torrens Street
London, EC1V 1NY
elizabeth.fleming@rssb.co.uk
From:
Date:
CONSULTATION RESPONSE FORM – PART TWO
Please ensure that this questionnaire and all comments (including Nil Returns) are returned to
arrive at the address shown above before 17:00 on 31 January 2013.
Questions
Use a separate box for each comment / Add boxes or pages as necessary
Q2. If members or stakeholders have any comments or suggestions as to how the stakeholder review of
products and services may be conducted they are asked to make them in the response to this consultation.
Q3. Members are asked to comment in principle on whether they support the proposal to have a five year
financial settlement with annual scrutiny and if so, whether they support the proposals in 2.2.2?
Q4. Do you agree with the general approach proposed in the outlined changes to Section 2 of the RSSB
Constitution Agreement?
Q5. Do you have any specific comments on the track changed version of Section 2 attached to this
consultation( Annex B)? If so please insert them in the form provided in Annex A ?
Q6. Do you support the way that the RSSB board proposes to establish and recognise its relationship with the
Rail Delivery Group?
Q7. Members and stakeholders are asked to comment on whether they would support a reduced role for the
Office of Rail Regulation in the governance of the company as outlined in section 2.2.6.
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Q8. Given all of the proposals set out above, is there anything that you consider to be inappropriate, or are
there any additional suggestions that you would wish to add?
Signature: ...............................................................
Date: ..........................................
Print Name and Title: ..................................................................................................................
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Annex B
Section 2
2
Draft amendments to Constitution Agreement
PRIMARY OBJECTIVE, PRINCIPLES OF OPERATION AND FUNCTIONS OF THE
COMPANY
2.1 Primary Objective
2.1.1
The Company’s primary objective shall be to support its members’ (the rail industry)
cooperation to achieve their objective of delivering value for money across the industry. The
industry objective includes:
2.1.2
reducing safety risk so far as is reasonably practicable
2.1.3
increasing capacity (where appropriate)
2.1.4
improving operating performance and customer satisfaction (where appropriate)
The Company will fulfil its Primary Objective through the delivery of specific functions and
services in accordance with the Principles of Operation.
lead and facilitate the Railway Industry’s work to achieve continuous improvement in the
health and safety performance of the railways in Great Britain and thus to facilitate the
reduction of risk to passengers, employees and the affected public so far as reasonably
practicable, so aiding compliance by providers of railway services with their obligations under
health and safety law.
2.2 Principles of Operation
2.2.1
Pursuing the Primary Objective
In pursuing the Primary Objective, the Company shall:
(a) exercise its functions in a manner best calculated to achieve an appropriate balance
between the need:
to protect the interests of users of railway services;
to promote the use of the Rail Network in Great Britain for the carriage of
passengers and goods, and the development of the Rail Network, to the greatest
extent economically practicable;
to promote efficiency and economy on the part of persons providing railway
services;
(i)
to enable persons providing railway services to plan the future of their businesses
with a reasonable degree of assurance;
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to facilitate the furtherance by the DfT of any strategies which it has formulated
with respect to its purposes including by having due regard to the appraisal
criteria, expenditure priorities and budgets which form part of those strategies;
and
(ii)
to demonstrate leadership and efficiency in the development and management of
its support functions;
(iii)
to take account of relevant strategies that are promoted or endorsed by the Rail
Delivery Group;
(iv)
to be accountable to its members for identified elements of industry process;
(v)
to lead for the whole industry in areas where a) by virtue of its functions it holds
industry leading competence, or b) requested by the industry through its Board;
(vi)
to maintain the independence of the Company, and, where appropriate, to
challenge or act as a conscience for the industry with respect to the functions it
fulfils;
(vii)
to provide an industry audit trail for the industry decisions it facilitates; and
(viii)
to promote solutions that recognise the railway as a system and the respective
interests of different Railway Industry Parties
to contribute to the development of an integrated system of transport of
passengers and goods; and
(b) where it is necessary to impose restrictions on Railway Industry Parties, to do so to the
extent proportionate to the achievement of the Primary Objective and having regard to
the criteria set out in clauses 2.2.1(a) (i)-(viii).
2.2.2
Carrying out the Company’s functions
The Company shall carry out its functions in a transparent and non-discriminatory way, and
where appropriate shall encourage and foster co-operation between Railway Industry Parties
to achieve the Primary Objective.
2.3 Functions of the Company
The Company shall carry out the following functions:
(a) the Company shall:
(i)
Manage and comply with the Code; in consultation with its Members,
representatives of other Stakeholders and
Railway Group Safety Plan;
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the DfT, develop and publish the
(i)(ii) monitor and report on the Railway Industry’s health and safety performance and
facilitate the collection and flow of information on health and safety matters in the
Railway Industry;
(ii)(iii) In relation to its functions, respond appropriately to recommendations and
enquiries that are directed to the Company by accident investigation or other
statutory investigatory bodies
(iii)(iv) Manage RDDSmaintain a current record of:
(A)
recommendations of accident investigations and formal inquiries;
(B)
the
responses
of
all
the
organisations
to
which
the
respective
recommendations are directed; and
(C)
the state of progress towards implementation within timescales recommended
or prescribed by such investigations or formal inquiries;
(iv)
disseminate and encourage adoption of good practice and encourage and
facilitate co-operation in each case on health and safety matters in the Railway
Industry;
(b) The Company may
(i)
Enter into agreements with other parties to provide specific services under
contracts or deeds of trust;
(ii)
Manage and develop cross industry research, development and innovation
programmes
(iii)
Facilitate industry responses and actions to address cross industry problems and
opportunities;
(iv)
Facilitate system coordination and co-operation to support optimisation of the rail
industry as a whole;
(v)
Support cross industry programmes and other cross industry groups;
(vi)
Provide, maintain and manage development of information systems, databases
and models;
(vii)
disseminate
good
practice,
build
industry
knowledge,
awareness
and
competence through providing training, horizon scanning, guidance and learning
from experience;
(ii)(viii)
in consultation with its Members, facilitate the effective representation of the
Railway Industry (including direct representation by the Company of one or more
RSSB Strategic Review Consultation 19.11.12
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Railway Industry Parties if so agreed with those parties) in subject areas relevant
to the Primary Objective in discussions with other industries, other railway
companies and organisations, public bodies and European Union institutions; and
(iii)(ix) in consultation with its Members, representatives of other Stakeholders and the
DfT and within the constraints imposed by funding available from the DfT or other
sources for this purpose, develop and implement a programme of health and
safety related research and development..
(c) the Company:
(i)
is responsible for establishing the Code and the document set out in Appendix 1
to this Agreement which has been approved or determined by the ORR shall be
the Code;
(ii)
shall comply with the provisions of the Code (as revised from time to time with the
prior approval of the Directors as a Reserved Resolution in accordance with
clause 4.4.6 or its Members in general meeting and the ORR);
(i)(iii) shall from time to time or when so directed by its Members in general meeting or
the ORR review in consultation with its Members and representatives of other
Stakeholders the provisions of the Code and its implementation and propose
revisions to the Code so as better to give effect to the Licence Conditions;
2.4 The Code
The Code shall be a code whose objectives promote the Primary Objective and the
Principles of Operation (subject to such transitional provisions as may be approved or
determined by the ORR in respect of Railway Group Standards in the course of preparation
when the Code is established) and which:
(a) establishes procedures for the review and monitoring of the effectiveness of Railway
Group Standards;
(b) establishes procedures for the creation of new Railway Group Standards, and the
modification or abolition of existing Railway Group Standards, which are such as to:
(i)
provide for a fair and balanced representation and participation in such
procedures by experienced and competent persons from all classes of
Stakeholders likely to be materially affected;
(ii)
provide for proposals for the creation, modification or abolition of Railway Group
Standards to be fully and fairly considered (other than any which are trivial or
vexatious), and for full and proper consultation with the ORR and DfT;
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(iii)
provide for Railway Group Standards to be consistent with European Technical
Specifications for Interoperability in force for the time being;
(iv)
provide an accelerated procedure for the creation, modification or abolition of
Railway Group Standards in specified circumstances to remedy material noncompliance with the Primary Objective;
(v)
provide for any Stakeholder aggrieved in any material respect by a decision in
respect of the creation, modification or abolition of a Railway Group Standard to
have the matter reviewed by the Board and thereafter, if dissatisfied with the
results of such review, to have the matter referred to the ORR for determination;
(c) requires the Company, where there are reasonable grounds for considering that the
creation, modification or abolition of a Railway Group Standard is necessary or
expedient having regard to the Primary Objective of the Company, to propose such
action and pursue it in accordance with the procedures referred to in clause 2.4(b); and
(d) authorises the Railway Group Standards in force from time to time.
2.5 The Code and Railway Group Standards
The Company shall:
(a) publish the Code and any modifications to it in such form or manner and with such
frequency as the ORR may require;
(a)(b)
provide a copy of the Code and any modification to it to each holder of a licence
under section 8 of the Act, other Members, the DfT and the ORR;
(b)(c)
publish a catalogue of current Railway Group Standards; and
(d) provide a copy of the Code and any Railway Group Standard or proposed Railway
Group Standard and of the catalogue referred to in clause 2.5(c) to any person
requesting a copy (and the Company may charge for its reasonable costs in the
provision of copies under this clause 2.5(d) provided that such charge shall not exceed
an amount which in the opinion of the ORR is reasonable).
Information
The Company may publish from time to time such information as may be necessary or
expedient to facilitate the comprehension and efficient and economic application of
standards (including TSIs) falling within the scope of the Primary Objective.
2.6 Other Changes in activities
The Company may, subject to the passing of a Reserved Resolution, cease to undertake
any of the functions set out in 2.3. (b) i to vii or add to the functions set out in 2.3. (b) i to vii
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the approval of Members in general meeting and the prior approval of the ORR, propose and
implement arrangements for it to carry out activities (in addition to those set out in clauses
2.3 to 2.6 of this Agreement)provided they are related to the Primary Objective and the
Principles of Operation. Changes, additions or subtractions to products and services (that
are listed on the company’s web site) can be made by any governance body established
under the authority of the Board, provided that if those changes will have a material impact
on the company’s resources or budgets, they shall also be subject to the approval of the
Board. or which facilitate improvements in the safety, efficiency or performance of railways
in the United Kingdom.
2.62.7
Publication of activities
The Company shall maintain and publish a list on its website of its functions and of all the
associated products and services those activities it carries out or delivers pursuant to clause
2 2.7.
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Annex C
Members of RSSB board subcommittee
Alan Emery
(Independent NED)
Dominic Booth
(Passenger TOCs and RDG)
Alain Thauvette
(FOCs and RDG)
Paul Plummer
(Network Rail and RDG)
Len Porter
(Executive director)
Anson Jack
(Executive director)
Jeremy Candfield
(Supplier representative)
Malcolm Brown
(ROSCO representative)
Michael Beswick
(ORR)
Paul Collins
(DfT)
Company secretary
Liz Fleming
Facilitator
David Archer
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Annex D List of activities added to or subtracted by RSSB
directors since 2003
Some of these functions were the subject of members’ votes or ‘reserved resolutions’ of
the board and others were adopted through a normal resolution. All decisions of the
board have been unanimous.
Additions

Creation of 6 (now 5) System Interface Committees

Support for the ERTMS programme (New Systems)
Feb 04

RISAS (Becoming a System Owner and an Accreditation Body)
Oct 05

Expanding scope R&D into business performance
Jun 06

Taking on GSM-R activities (New Systems)
Dec 06

Acquisition of T&RS SMG
Feb 07

Acquisition of RDDS
Mar 07

Creation of Sustainable Rail Programme
Feb 07

‘Adoption’ of CIRAS
Mar 07

Creation of TSAG

Become a bidder for EU Framework Programme
Mar 07

Establish a long term TPWS strategy
July 07

Establishment of Industry Safety Meetings(ISMs)
Oct 08

Establishment of a Supplier Assurance Framework project
Dec 08

Lead the ‘New Approach to the Rule Book’
2008/2009

SRM to be used by HMG as basis for HLOS Safety metric
Feb 09

Industry Shared Risk Database, Duty of Co-operation Guide,
Jan 10

Rail Notices.
Jan 10

Train Driver Selection – adoption of Governance group.
Jul 10

Provision of data/analysis to the ORR.
May 11

Workforce Health Project.
Mar 12

Creation of an enabling innovation team
Jul 12

Rolling Stock Data Systems – Governance and procurement of
Jul 12
(Now TSLG and with reporting line to RDG)
Dec 03/Feb 04
Mar 07
Subtractions

Ceasing Formal Inquiries
2006

No SSP for CP05 (Railway Group safety Plan is part of the CA)
Mar 12
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