MD2208 Independent Investment Programme Advisory Group

1.1. In June 2010 Transport for London (TfL) acquired Tube Lines Limited, the then remaining Underground Public Private Partnership (PPP) company. This followed the acquisition in 2008 of all the assets of the entities running the other two Underground PPPs, known collectively as Metronet, and brought those three PPP arrangements for the maintenance, upgrade and renewal of the Underground under TfL's control.

1.2. The PPPs included a contractual regime whereby an independent PPP Arbiter collected and analysed benchmarking data relating to the performance of investment in the Underground under the PPPs. With the unwinding of those PPPs, there was no longer a role for the PPP Arbiter but it was, nevertheless, considered by the then Mayor, then Secretary of State for Transport and TfL that there should continue to be expert independent scrutiny of work concerning the maintenance, upgrade and renewal of the Underground to ensure best value for the taxpayer.

1.3. In October 2010, the then Mayor directed TfL to expand the remit of TfL’s Investment Programme Advisory Group (MD705 – attached as Appendix B). This created the Independent Investment Programme Advisory Group (IIPAG) to provide independent assurance and expert advice to the Mayor and the Secretary of State for Transport concerning TfL’s Investment Programme, including all maintenance, renewal, upgrades and major projects, but not operational issues or the activities of Crossrail Limited.

1.4. Since the establishment of the current arrangements for IIPAG, there have been a number of changes and developments to the system in which IIPAG operate. A review has therefore been carried out to consider the role and remit of IIPAG.

1.5. The conclusions from this review were reported to the TfL Programmes and Investment Committee in June 2017 and the TfL Audit and Assurance Committee in July 2017. TfL subsequently reported to both Committees on a plan for the implementation of the review’s recommendations in October 2017.

1.6. In order to implement the recommendations made by the review of IIPAG the following key changes to IIPAG’s remit and governance are required:

• Clarifying role of IIPAG in providing assurance to the Mayor and also the TfL Board, the TfL Board Committees and the TfL Executive;

• Clarifying IIPAG's role in relation to operational issues and benchmarking;

• Amending the role of the Department for Transport;

• Allowing IIPAG to make use of a pool of experts to support the Group in its activities;

• Clarifying the role of IIPAG in assuring the development of the TfL Investment Programme;

• Specifying IIPAG’s role in overseeing the TfL assurance regime;

• Changing the appointment process for members; and

• Changing IIPAG’s reporting requirements.

1.7. As the remit and governance of IIPAG is currently the subject of a Mayoral Direction, the Mayor should direct TfL concerning the revised approach, in the form set out in Appendix A.

1.8. TfL have been consulted on the terms of the proposed revised direction. In its November meeting, the TfL Board approved the changes to the Programmes and Investment Committee and the Audit and Assurance Committee’s Terms of Reference.

1.9. Representatives of the Department for Transport were interviewed as part of the review and were content that the final report and its recommendations reflected their input. Specifically it is proposed that the Department for Transport no longer be required to;

• agree a shortlist of potential IIPAG members;

• be consulted on the annual IIPAG work programme; or

• approve the IIPAG Terms of Reference.

1.10. The Department for Transport will continue to receive reports produced by IIPAG.

2.1. The objective is to update the remit and governance of the IIPAG to reflect the recommendations made by the review of IIPAG as adopted by TfL. Implementing these recommendations will ensure IIPAG can continue to support the efficient delivery of the TfL Investment Programme.

3.1. Section 149(1) of the Equality Act 2010 provides that in the exercise of their functions, public authorities must have due regard to the need to:

• Eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Equality Act 2010;

• Advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it; and

• Foster good relations between persons who share a relevant protected characteristic and persons who do not share it.

3.2. In its activities, this requirement will apply to TfL in implementing the recommendations of the review and IIPAG in its operations.

3.3. The obligation in section 149(l) is also placed upon the Mayor, as decision maker. Due regard must be had at the time a particular decision is being considered. The duty is non-delegable and must be exercised with an open mind.

3.4. In considering this proposal, the Mayor may conclude that it does not, of itself, have any immediate equality impacts. However it should be noted that IIPAG will play an important role in ensuring the effective delivery of TfL’s Investment Programme, the components of which will need to consider all the equalities issues described above.

Key risks and issues

4.1 The review has sought to minimise duplication and ensure clarity of roles in order to minimise risk. IIPAG will be able to draw in external experts where necessary to address areas of concern where it may not have the requisite skills to address.

Links to Mayoral strategies and priorities

4.2 An effective assurance regime will support the delivery of the Mayor’s Manifesto commitments and the draft Mayor’s Transport Strategy to schedule and budget.

Impact assessments and consultation

4.3 Representatives from the Department for Transport were interviewed as part of the review of IIPAG and were content that the final report and its recommendations reflected their input

5.1. The costs of IIPAG will be met by TfL and are provided for in TfL’s business plan and budget. Transport for London shall prepare each year a budget for approval by the Audit and Assurance Committee so as to ensure that the Group has adequate resources and appropriate support to enable it to carry out effectively its role as described in this Mayoral Direction. This will include any cost associated with a pool of experts.

5.2. There will be no specific financial implications for the GLA arising from this decision.

6.1. Section 155(1) of the Greater London Authority Act 1999 (GLA Act) provides that the Mayor may issue to TfL:

a) guidance as to the manner in which it is to exercise its functions,

b) general directions as to the manner in which it is to exercise its functions, or

c) specific directions as to the exercise of its functions.

6.2. Section 155(3) of the GLA Act also provides that directions which may be issued by the Mayor under subsection (1) may include, in particular, directions as to the manner in which TfL is to perform any of its duties.

6.3. Any directions issued under section 155(1) must be issued in writing and notified to TfL.

6.4. The Mayor is obliged to exercise the power of direction under section 155(1) in accordance with public law principles of reasonableness and rationality.

6.5. The analysis set out this this paper indicates that the Mayor may make the Direction proposed.

• Appendix A: Mayor’s direction to TfL.

• Appendix B: MD705 and direction letter to TfL.

• Appendix C: IIPAG Review Report

• Appendix D: Audit and Assurance Committee Paper – 11 October 2017

• Appendix E: Audit and Assurance Committee Paper – 13 July 2017

• Appendix F: Audit and Assurance Committee Paper – 11 October 2016

• Appendix G: Programmes and Investment Committee Paper – 13 October 2017

• Appendix H: Programmes and Investment Committee Paper – 28 June 2017