Transport for London

Minutes of a meeting of the Board
held on Tuesday 11th June 2002, commencing at 10  a.m. 
in Room AG16, Romney House, Marsham Street, London SW1P 3PY

Present: 	Ken Livingstone (Chair)
Board Members:	Professor David Begg		
	Professor Stephen Glaister 	 	
	Noël Harwerth 
	Kirsten Hearn
	Mike Hodgkinson
	Oli Jackson		
	Paul Moore
	Murziline Parchment
	David Quarmby 
	Tony West
	Dave Wetzel (Vice Chair)	
						
Special Advisors	Bryan Heiser
in attendance:	Lynn Sloman
	
Others 	Robert Kiley		
in attendance:	Ian Brown
	Stephen Critchley
	Mary Hardy
	Peter Hendy		
	Betty Morgan	
	Lesley McLeod
	Maureen Nolan
	Derek Turner
	Jay Walder
	Jeroen Weimar

33/02	APOLOGIES FOR ABSENCE 

Apologies for absence had been received from Susan Kramer.

34/02	DECLARATION OF INTERESTS

The Chair reminded Board Members of the requirement to declare any interests in matters under discussion.   No interests were declared. 

35/02	MINUTES OF PREVIOUS MEETINGS

The minutes of the meetings held on 12th April 2002 were agreed as a true record. 
36/02	MATTERS ARISING

There were no matters arising, not covered elsewhere.

37/02	COMMISSIONER’S REPORT

There were no questions on the Commissioner’s report, and the report was  noted. 

38/02	FINANCE AND PERFORMANCE REPORT

Jay Walder gave a presentation supporting and updating his written Finance and Performance Report to cover the year ended 31 March 2002, and other significant items discussed at the Finance and Audit Committee meeting held on 21st May  2002.   Key financial issues during 2001/02 included a substantial increase in spend rate, improvements in monitoring and forecasting  and a recognised need to secure a better understanding of work completed by the Boroughs. 

During discussion, it was noted that:  

•	Whilst tourist visitor nights were down in March, there had been an increase in tourism figures in April.  It was anticipated that by May the recovery would match the figures for Summer 2001;
•	TfL had put in place a programme to reduce the number of agency staff and consultants employed throughout the TfL Group, although it was recognised that it would not be possible to achieve a reduction across all areas;
•	There was no progress to report on the future funding of London Underground Ltd (LUL). There would be a shortfall of £1.5 billion over the 7.5 year period, which could be increased dramatically if Government will not take full responsibility for certain risks inherent with PPP contracts and the pre-existing obligations of LU that will be transferred to TfL;
•	Income for buses was £12m below budget, mainly due to a shift in the types of travel products purchased.  Future products such as Prestige or smartcards, which will automatically optimise travel options for the customer, might have an adverse impact on future revenue. 

The report was noted.

39/02	BEST VALUE PERFORMANCE PLAN  

Jay Walder introduced a paper updating the Board on TfL’s Best Value Performance Plan (BVPP).  It was noted that a  copy of the Plan  would be provided to TfL’s external auditors by 30 June, in line with Government guidelines.  The Plan was due to be published as part of the Business Plan and will be posted on the TfL website. 

The Board:
(i)	agreed the revisions to TfL’s Best Value Performance Plan (BVPP), as outlined in the Board paper Agenda Item 6; and
(ii)	delegated to the Managing Director, Finance & Planning, the authority to make the final changes to the BVPP prior to its publication on 30 June 2002. 

40/02	SOCIAL INCLUSION ACTION PLAN  

The Commissioner introduced a paper updating the Board on TfL’s Social Inclusion Action Plan, which had been considered by the three Advisory Panels at their meetings in May 2002.   It was anticipated that an offer for the post of Head of Social Inclusion would be made shortly and the post filled in the near future. 

The Board agreed the final Social Inclusion Action Plan.

41/02	REVIEW OF BOARD ARRANGEMENTS AND STANDING ORDERS  

The Commissioner introduced a paper outlining the recommendations arising from his recent review of the arrangements supporting the work of the TfL Board, and also setting out the revised Standing Orders.  The review of the Standing Orders had been undertaken as a requirement arising out of the Board’s approval of the Standing Orders in March 2001.  It was noted that the majority of the amendments made to the Standing Orders were minor in nature.  These had been effected in order to eliminate ambiguities and inconsistencies, and to reflect organisational changes made since March 2001. 

It was proposed that the Finance and Audit Committee be split into two separate committees.   A list of proposed members of all the Committees and Advisory Panels had been circulated to Board Members.

During discussion, the following points were noted:
•	Kirsten Hearn expressed concern at the proposed reduction in the distribution period for the agenda and papers for meetings from 5 to 3 working days, and requested an assurance that officers will meet deadlines for the despatch of papers in future. The Commissioner assured Kirsten Hearn that officers would endeavour to make papers brief and succinct in future and that the situation would be monitored closely;
•	It was confirmed that the new meetings cycle would take effect from September 2002;
•	Concern was expressed by some Board Members that the new arrangements did not provide a formal mechanism for the consideration of cross-modal issues (for example, fares, marketing or transport planning). It was noted that an Awayday and several additional informal meetings for Board Members had been proposed, at which specific topics could be discussed in more depth. However, some Board Members considered the proposed Panel and other arrangements to be deficient in this respect and the Commissioner agreed to keep the matter under review;
•	The suggestion was made that any outstanding items not considered at Board meetings could be referred to the Commissioner for action and a report made to the next Board meeting on any actions taken;
•	The Board meeting on 30 July would be held in the Mayor’s new offices in City Hall.  The new location was expected to be more spacious and provide improved facilities for members of the public. 

Following discussion, the Board: 

(i)	agreed the adjustment of the timing of the cycle of Board, Panel and Committee meetings to accommodate TfL’s management processes;
(ii)	agreed the revised Standing Orders;
(iii)	agreed the membership of the new Audit Committee and Finance Committee, the Advisory Panels and the Executive Management Group, and confirmed the membership of the other Committees, as outlined in the Appendix C of Agenda Item 8.1;
(iv)	delegated to the Commissioner the power to make minor drafting amendments to the revised Standing Orders;
(v)	delegated the power to make appointments of members and officers to the subordinate bodies as described in Appendices 1-8 of Standing Order 1 to the Chair, in consultation with the Commissioner, such appointments to be endorsed by the Board at the next meeting following the appointment;
(vi)	noted that a more comprehensive review of the Standing Orders in the context of the integration of London Underground Limited will be undertaken and will be put to the  Board at the appropriate time. 

42/02	CORPORATE GOVERNANCE REPORTING

TfL’s Internal Audit Director presented a paper outlining the proposed corporate governance disclosures in the March 2002 accounts.  It was anticipated that such a code would be made mandatory by March 2003. 

The following points were noted:

•	The senior manager responsible for the operation of the Code of Corporate Governance on an interim basis would be Richard Meads;
•	The CIPFA/SOLACE code did not address a complaints procedures, but this would be included within the Ombudsman complaints procedure.

Following discussion, the Code of Corporate Governance, the note on corporate governance and the Statement of Corporate Governance Assurance, revised to reflect minor amendments such as the existence of the new Finance and Audit Committees, were agreed.

43/02	SAFETY, HEALTH AND ENVIRONMENT COMMITTEE REPORT

David Quarmby introduced a report of the meeting of the Committee held on 15 May 2002.  Board Members welcomed the more informative report from the Committee. 

The report was noted.

44/02	DLR EXTENSION TO WOOLWICH ARSENAL

The Managing Director, Rail Services, introduced a report outlining the proposed extension of the DLR network from the proposed station at North Woolwich to a new station at Woolwich Arsenal.  An application under the Transport and Works Act was a formal and long process and the preparation had already been carried out. 

It was noted that:
•	A poll of ten thousand local people in the area indicated that 95% supported a rail extension into Woolwich;
•	Consideration had been given to interchanges with national rail, and also with buses and town centres;
•	Care had been taken over the design of the scheme with respect to Crossrail, which was aligned to cover the same area, though at a later date. 

Board Members discussed the relationship of this project with the City Airport Scheme and it was noted that the decision had been made not to combine the schemes. The Chair expressed delight over the project, which he expected would open up employment opportunities in South East London and he was optimistic that the funding issue with Government would shortly be resolved.  

Following discussion, the Board agreed the submission of an application under the Transport and Works Act for powers to build an extension of the DLR to Woolwich Arsenal. 

45/02	TREASURY MANAGEMENT POLICY STATEMENT

The Managing Director, Finance & Planning, introduced a paper recommending the Treasury Management Policy Statement, which had been considered by the Finance and Audit Committee on 21 May 2002.  The revised Statement updated the Policy agreed by the Board in September 2001. 

It was noted that:

•	The Policy Statement had been amended in line with the new relevant CIPFA code;
•	The Audit Committee would receive regular Treasury management reports in future;
•	A provision to deter money laundering had been included in the Policy Statement;
•	The Policy had been amended to allow a maximum of £20m in total as approved investments;

The Board agreed the revised Treasury management Policy Statement.

46/02	ANY OTHER BUSINESS

46.1/02	Chair’s Actions
The Managing Director, Surface Transport, reported that two Chair’s Actions had been taken as follows:
•	Agreement with the Metropolitan Police Association;
•	Transport Policing Initiative.

The Board endorsed the Chair’s Actions.

46.2/02	Directorship of TTL
The resignation of Michael Swiggs as a director of Transport Trading Limited (TTL) and his departure from TfL were noted.  The Commissioner and the Board wished him well and thanked him for his valued assistance during the transition and setting up of TfL. 

46.3/02	Trafalgar Square
Kirsten Hearn expressed concerns raised by the disabled community over safety issues and inclusiveness of the new design for Trafalgar Square.  The design included a proposed lift and staircase (with ramps) from Trafalgar Square to the level of the National Gallery, with a retail outlet at lower level.   Negotiations were underway with Westminster Council and it was noted that the development of the staircase was conditional on the provision of disabled access.      

It was noted that the key principles of access for the disabled were that access should be: safe; public; open 24 hours a day; and direct, not indirect.  It was also noted that the new Disability Discrimination Act required public buildings to ensure that the  disabled have reasonable access. 

The Chair agreed to monitor the development with these points in mind.  Bryan Heiser and Kirsten Hearn were invited to provide input on access issues to Derek Turner.  The possibility of utilising the warden service in this area to provide 24 hour access to the lift and public conveniences was discussed. 

46.4/02	SRA Appointment
It was noted that David Quarmby had been appointed Deputy Chair of the SRA with effect from 5 June 2002 and the Board extended congratulations  on the appointment. 

 There being no further business, the meeting closed at 11.10 a.m.   

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Chair		Date