# Office Of Rail Regulation Minutes Of The 91St Board Meeting On 26 February 2013 (10:00 - 16:00) In Room 1, Orr Offices, One Kemble Street, London

Board present:  
Non-executive directors: Anna Walker (Chair), Tracey Barlow, Peter Bucks, Mark Fairbairn Mike Lloyd, Stephen Nelson, Ray O'Toole, and Steve Walker. 

Executive directors: Richard Price (Chief Executive), Michael Beswick (Director, Rail Policy), Ian Prosser (Director, Railway Safety), and Alan Price (Director, Railway Planning and Performance)  
In attendance, all items: Dan Brown (Director, Strategy), Richard Emmott (Interim Director, External Affairs), Juliet Lazarus (Director, Legal Services), Carl Hetherington (Deputy Director, Railway Markets and Economics), Tess Sanford (Board Secretary), and Gary Taylor (Assistant. Board Secretary). 

In attendance, specific items:   John Larkinson (PR13 programme Director) items 5 and 6, Gordon Cole (Principal financial analyst) item 4, Chris Fieldsend (industry planning manager), item 6, Annette Egginton (Head of Competition and Consumer policy) item 7, Alasdair Frew 
(Head of Corporate Communications) item 8.  

## Item 1: Welcome And Apologies For Absence

1. 

The Chair welcomed everyone to the meeting. Apologies were received from Cathryn Ross, Director of railway markets and economics. 

## Item 2: Declarations Of Interest

2. 
There were no interests declared.  

## Item 3: Monthly Safety Report/Issues To Advise The Board

3. Ian Prosser's written update was included in the CE's report at item 11. Ian 
highlighted the following points: 
4. A significant concern had been the recent high risk incidents of rail-end breaks on 
the London and North East (LNE) route along with similar incidents in Sussex. Ian reported that the cause of the rail breaks had been attributed to adverse weather 
conditions, with concerns raised with Network Rail over fault finding and management arrangements. Further work was being undertaken by Network Rail to 
establish whether there are any other causes for breakages. There were concerns 
that the cause of the breakage was not solely bad weather and that they were occurring within Network Rail's agreed tolerance period.  
5. Ian confirmed that we are monitoring the situation closely. Dialogue with Network 
Rail will continue as we want to establish how Network Rail will resolve these 
problems. It was noted that following the LNE incident, ORR made a public 
statement alongside concerns raised through the Q3 Network Rail monitor. We agreed that the Board should be updated following further investigation by Network Rail.  
6. Mike Lloyd said that he would discuss the relevant technical issues around broken 
rails further with Ian Prosser following this meeting. 
7. We recognised the need to ensure that the right safety information and subsequent 
discussions were had at the Board. We agreed that the Chair, Chief Executive and Board Secretary would discuss further. As part of this work it was suggested that we should consider the relevant issues and lessons learned arising from the report on 
Mid Staffs NHS Foundation Trust which had recently been published. We recognised that there were important points in relation to safety regulation which the ORR Board should note when considering its safety duties.  
8. The Chief Executive and Steve Walker highlighted the recent meeting with Carolyn 
Griffiths of the Rail Accident Investigation Branch. Steve reported that the meeting had proved useful in understanding some of Carolyn's concerns, particularly the closing of RAIB recommendations by ORR and understanding the time taken to do 
this. The Chair reported that a 1:1 meeting between herself and Carolyn was planned for 12 March 2013. The Chair agreed to provide the Chief Executive with feedback following the upcoming meeting.   
9. System safety was raised. We noted that a discussion was scheduled to take place 
at the next Safety Regulation Committee on 18 March 2013. Steve Walker agreed to provide an oral update to the Board on 19 March 2013. 
 
- 
Board 26.02.2013 Action i:  The Chair, Chief Executive and Board Secretary to 
consider how to ensure the right flow of topics and safety information and appropriate discussion time is taken at Board meetings. 
- 
Board 26.02.2013 Action ii: Mike Lloyd to discuss technical issues around broken 
rails with Ian Prosser in more detail following the meeting    
- 
Board 26.02.2013 Action iii: Issue of broken rails to be brought back to Board at 
appropriate time following results of further Network Rail investigation.   
- 
Board 26.02.2013 Action iv: Chair to provide feedback to the Chief Executive 
following the scheduled 1:1 meeting with Carolyn Griffiths on 12 March.  
- 
Board 26.02.2013 Action v: Schedule board discussion on safety issues reflecting 
concerns from Francis report on Mid Staffs (timing: summer, subject to any more 
pressing concerns raised by staff during consideration of the issues). 
- 
Board 26.02.2013 Action vi: Board to receive oral update on system safety 
discussion at SRC on 18 March. 

## Item 4: Our Assessment Of Network Rail'S Financial Performance In 2012-13

This section and its actions has been redacted as it relates to policy development  

## Item 5: Emerging Issues On The Strategic Business Plan

23. We discussed the emerging themes arising from the recent consultation and 
stakeholder events to discuss Network Rail's proposed Strategic Business Plan.  
24. John confirmed that there had been positive engagement from a significant number 
of industry stakeholders who had raised constructive points for consideration.  
25. We noted that there were consistent themes emerging from the responses received 
from the consultation. This included: 
- 
Omissions, such as the lack of detail around depots, TOC concerns with 
maintenance and management; 
- 
Inconsistency between the routes and central plans, treatment of rolling stock and 
timetabling; 
- 
A lack of scope and timings for major projects; and 
- 
The most disappointing and noticeable gap was around asset management. 
26. Network Rail had provided further information following discussion of the key themes 
arising from responses. This had been most evident with a detailed response on the concerns raised in relation to asset management. Work would continue with Network Rail through the programme of challenge meetings. 
The rest of this section has been redacted as relating to policy development. 

## Item 6: Outputs - Emerging Thinking

30. John Larkinson presented a set of slides which set out the significant issues relating 
to the outputs framework for CP5. John confirmed that this session was to provide the Board with the opportunity to consider the main issues and discuss any gaps in 
the information which will need to be addressed in advance of decisions at the Board meeting in March 2013.  
The rest of this section has been redacted as it relates to policy development. 

## Item 7: Transparency - Update

47.  Richard Emmott and Annette Egginton presented an update on our approach to 
transparency. 
48. The work carried out by the consultancy firm SKM had highlighted a number of 
areas for consideration which would inform our approach going forward. Annette 
agreed to provide the Chair with a copy of their report. 
49. We suggested that it would be useful to understand how the information that was 
currently published across the industry fitted together and what gaps there were. We 
asked staff to consider how these can be addressed and what role (if any) ORR 
could play. This would be useful to include as part of our transparency policy statement. Transparency was a means to an end. ORR needed to be clear on the purposes and value of any intervention it made.  
50. Transparency is a key priority for the organisation and acts as an enabler for our five 
strategic objectives. Given this importance the Board needs to have ownership of 
key policy decisions. 
51. We discussed the development of our transparency policy statement. Annette 
confirmed that the draft statement focuses on ensuring greater transparency of 
financial industry data and the consumer data held in our data portal. Making our 
own data more open was also seen as a key objective. 
52. A key strand of our work should be to ensure that we communicate to the industry 
our stance on transparency and why we believe in the benefits of this work. 
53. Richard Emmott confirmed that the governance arrangements around the 
transparency programme were currently being reviewed. The links and potential overlaps between the transparency and consumer programmes of work were currently being considered to assess whether a revised approach could be taken to draw together the two programmes. 
54. We agreed that the policy statement should return to the Board in due course. It was 
agreed that consideration should be given to our strategic approach and that the 
Board should be sighted on:  
- 
Ambition of our transparency work; 
- 
the ability to deliver; and  
- 
external handling.  
 
- 
Board 26.02.2013 Action xvi: Annette to provide the Chair with the SKM report  
- 
Board 26.02.2013 Action xvii: Ensure clarity around strategic aims for 
transparency programme and deliverables for 13/14 and consider whether resources are adequate. 
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Board 26.02.2013 Action xviii: Transparency policy statement to be approved at 
Board meeting. Date to be scheduled.  
- 
Board 26.02.2013 Action xix: Any proposed change in governance of the 
transparency programme to be considered by the Board alongside the transparency policy statement. 
- 
Board 26.02.2013 Action xx: Executive to produce for the board a map of the 
landscape of what is published by the industry and passenger groups and identify any gaps where ORR could look to add value.  To be included in the transparency policy statement item at the Board. 

## Item 8: Communications Strategy

55. Richard Emmott presented a new communications strategy for ORR. The approach 
had been developed by the External Affairs team. 
The rest of this section to be redacted in full as it relates to policy approach. 

## Item 9: Business Planning 2013-14

62. As discussed on 25 February, we agreed with the proposed financial envelope for 
2013-14. Dan confirmed that the 2013-14 Business Plan would be amended in line 
with that discussion and brought back for sign off at the March 2013 Board meeting.   
 
Board 26.02.2013 Action T: Financial envelope agreed. Business Plan to be 
discussed and signed off at March Board meeting. 
 

## Item 10: Orr'S Capability Plan

63. Following discussion at the Board session on the previous day, we agreed with the 
approach for the Executive team to provide a quarterly update on their work on 
capability development, which would be part of a wider organisational development 
programme. 
 
Board 26.02.2013 Action S: Agreed to include quarterly updates in the forward 
programme on the work the Executive is doing around organisational development. 

## Item 11: Chief Executive'S Overview And Monthly Data Pack

64. On Europe, Board members would receive a briefing on the fourth package, recast 
of the first package and IRG chairmanship. We agreed that an update on Europe would need to be scheduled on the Board forward programme and that our approach should be more proactive and visible. 
65. We noted that the Railway Safety Directorate had centralised its investigations for 
prosecution into a small team. Ian confirmed that the team focus on evidence gathering and preparing prosecutions. This was seen as a positive move in ensuring greater efficiency in the prosecutions process and developing specialist skills. Juliet 
confirmed that this was seen as a positive move from the legal team. 
66. Ian reported that a sentencing hearing was taking place on 28 February for ORR's 
prosecution of London Underground Ltd, Tube Lines Ltd and Schweerbau GmBH. 
The prosecution was brought following breaches of health and safety law which led to an engineering train running out of control for nearly four miles on the London Underground's Northern Line on 13 August 2010. All three companies have pleaded guilty to charges brought in connection with the incident. 

## Item 12: Board Forward Programme

67. The Board forward programme was noted. There was some confusion on Board 
dates for October and November. The Board Secretary agreed to circulate a list of Board meetings and associated events for the remainder of 2013. 
Board 26.02.2013 Action W: Board Secretariat to circulate comprehensive list of 
Board and committee dates for the remainder of 2013. 

## Item 13: Approval Of Minutes Of Board Meeting Held On 15 January 2013

68. The draft minutes of the meeting held on 15 January 2013 was noted. We agreed 
that the record of the Network Rail Strategic Business Planning item should be 
amended to include the comment by David Higgins about the concerns he had around civils and the work to remedy those concerns. The Board Secretary would 
amend accordingly. 
 
Board 26.02.2013 Action X: January Board minutes be amended. 

## Item 14: Matters Arising Not Taken Elsewhere On The Agenda

69. The updates on the outstanding Board actions were noted.  

## Item 15: Any Other Business

70. Mike Lloyd highlighted that there had been no ATOC representative present at the 
past two Railway Industry Health and Safety Advisory Committee in spite of their insistence that only they could represent the TOCs. The Chair and Chief Executive agreed to raise this at their next meeting with Tom Smith, Chair of ATOC. 
Board 26.02.2013 Action Y: Chair and Chief Executive to raise issue of ATOC's non-attendance at recent RIHSAC meetings at the next meeting with Tom Smith. 

## Item 16: Meeting Review

71. We agreed that the discussion on Outputs had been well structured and provided a 
high quality discussion. 

## Below The Line Items Item 17: Network Rail Governance Paper

72. The recommendation to take no action was agreed.  The paper highlighted a 
number of significant issues which would be picked up at the Board when the MIP is 
discussed. 

## Item 18: Passengers At The Heart Of Our Activities

73. The significant points of this paper were discussed at the Business planning session 
on the previous day. 

## Item 19: Risk Based Regulation

74. Risk based regulation was recognised as a significant strategic issue which the 
Board need to discuss but this paper was only part of the wider work that was going 
on to clarify and review our decision making processes. A discussion would be 
scheduled  when the wider work was further advanced. 
 
Anna Walker Chair Minutes approved by the Board 19 March 2013