Transport for London

Minutes of a meeting of the Board
held on Tuesday 13th March  2001, starting at 10.00 a.m. 
in  Room AG16, Romney House, Marsham Street, London SW1P 3PY

Present: 	Ken Livingstone (Chair)	
Board Members:	Dave Wetzel (Vice-Chair)	
	David Begg	
	Stephen Glaister	
	Kirsten Hearn	
	Mike Hodgkinson	
	Oli Jackson
	Susan Kramer 
	Robert Lane
	Joyce Mamode (Items 10 to 17)	
	Paul Moore
	Steven Norris
	David Quarmby (Items 17 to 22)
 	Tony West
		
Special Advisors 	Bryan Heiser 
in attendance: 	Lynn Sloman 
	
Others 	Robert Kiley
in attendance :	Betty Morgan
	Maureen Nolan
	Michael Swiggs
	Jay Walder

10/01	APOLOGIES FOR ABSENCE

Apologies for absence had been received from Jimmy Knapp.  Nicky Gavron, normally in attendance at meetings, had also sent her apologies. 

11/01	MINUTES OF THE PREVIOUS MEETINGS

The minutes of the previous meeting held on 23rd January and the private meeting held on 8th February were agreed as a true record. 

  12/01	MATTERS ARISING

12.1/01	Statistical breakdown of the workforce (Minute 04.1/01)
It was noted that the Chair had requested a report from Angela Mason on monitoring gay and lesbian issues.  It was further noted that TfL had been continuing work in this area, in consultation with Lee Jasper. 

    12.2/01	Mayoral Requirements for London Rail Network (Min 12/01).
It was noted that the draft guidance would be circulated to Board Members when finalised. 

13/01	REPORTS 

13.1/01	Commissioner’s Report 

The Commissioner gave an oral update on recent and future developments, and highlighted the major items on the agenda.  It was noted that in future, this item would take the form of a written report. 

Corporate governance
The main focus of the Board meeting was to agree the new decision making framework for TfL and the new Standing Orders to enable the new structure to take effect. 

PPP
Extensive negotiations on PPP had taken place over the previous month with the DETR and Treasury and discussions were continuing. The main issue remained that of unified management control.  At a private meeting of the Board held on 1st March, progress had been reviewed and legal advice taken.  At that meeting, the Board delegated to the Commissioner the decision on whether, and when, TfL should seek a judicial review of PPP on the grounds that, as currently framed, the proposals were inconsistent with TfL’s statutory duties. The Commissioner remained optimistic that a solution could be achieved in the near future.

London Underground
A series of regular meetings had been initiated to facilitate the integration of London Underground into TfL.

Appointments 
Jay Walder had recently been appointed Managing Director, Performance and Finance, and Jeroen Weimar had been appointed Chief of Staff to the Commissioner.   Appointments to the posts of Director of Communications and Chief Press Secretary would be announced in the near future. 

Ian Brown, Chief Executive of Docklands Light Railway, would be advising the Commissioner over the next six months on rail service initiatives.

13.2/01	Development of Performance Indicators and monthly Performance Reports (January 2001)

A paper outlining the further progress made to date in reviewing performance indicators for TfL and for London Underground was considered.

The following points were noted during discussion:
•	it was anticipated that, in future, the Advisory Panels and the Finance and Audit Committee would examine the Performance Reports in depth; 
•	an overview comparison with the London economy was suggested as a useful addition in future;
•	it was agreed that consideration should be given to the inclusion of  data on assaults  in future reports;
•	the suggestion of utilising CCTV equipment to cut down on assaults was noted.  The Commissioner reported that he proposed working on this proposal in co-operation with the Metropolitan Police Authority, covering employees and customers in buses, taxis and London Underground.  It was noted that the board of London Bus Services Ltd. examined data on assaults on buses on a regular basis and that TfL was collaborating with the MPA on measures to reduce violence on buses;
•	work undertaken on social inclusion issues (including mystery shopper surveys) should be extended; 
•	it was agreed that the report should be taken in business sections in future;
•	it was noted that London Underground had been specifically invited to send a representative to the meeting to provide background information, but no representative was present;
•	queries were raised on the performance of the Woolwich Ferry and it was agreed that an explanatory note should be circulated to Board Members.

13.3/01	Best Value Performance Plan

A paper updating progress made on Best Value and the arrangements in place to implement Best Value in TfL was considered.    

It was noted that TfL was under a statutory requirement to approve the Plan.  A copy of the full Plan was available to Board Members on request. 

Following discussion, the Board noted: 

(i)	the summary of the Best Value Performance Plan, and the intention that the full Plan should be finalised and approved by the Managing Director, Finance and Performance and published before 31 March;

(ii)	the performance indicator projections for 2001/02; and

(iii)	the draft programme of Best Value Reviews (to be considered by the Commissioner and his management team, finalised and then included in the published version of the Best  Value Performance Plan). 

13.4/01	Health, Safety and Environmental Policy Advisory Group
 
David Quarmby supplied a short report as follows: 

•	the Health, Safety and Environmental Policy Advisory Group had met on 21st February, at which a presentation had been made on Safety Management Systems in place across TfL.  Specific work had been identified to take forward on bus service contracts and Croydon Tramlink;
•	a need  had been identified for safety advisors to present an overview on current systems across TfL at the next meeting, scheduled for 19 April;
•	the principles of Safety Key Performance Indicators (SKPIs) had been  developed and a work programme had been identified to specify the level of detail and consistency required for SKPIs across TfL;
•	issues of importance concerning the health and safety obligations of contractors had been identified.  The issues surrounding Section 3 liabilities would be clarified  by seeking Counsel’s opinion; 
•	comments from TfL Safety Advisers on the draft Transport Strategy had been included in the Board paper 8.1; and
•	TfL’s response to the HSE Consultation Document on Health and Safety Responsibilities of Directors had been made by the deadline of 9 March. 

14/01	REVISIONS TO DECISION-MAKING FRAMEWORK

A paper outlining the revised governance proposals for TfL was considered. It was noted that an informal discussion of Board Members had been held on 5th March, at which Board Members had discussed the outline of the  proposed structure.

The Commissioner outlined the proposed new structure under which the TfL Board will set policy, agree strategic direction and oversee the performance of the executive team. All day to day operational responsibility will be delegated to the Commissioner, who will be advised by an Executive Management Group. Three Board committees (Remuneration, Finance & Audit, and Health & Safety) will report directly to the Board and ensure that key areas are monitored by Board Members.   Three Advisory Panels would ensure that Board Members provide strategic advice on the development and implementation of policy to the Commissioner.

Board Members welcomed the proposals.  During discussion, the following points were noted:

•	the quorum for the proposed committees and Advisory Panels (in particular the Remuneration committee) appeared to be low, although it was noted that the size and composition of the groups had not been finalised.    The Chair suggested the use of alternates at meetings to cover any Board Members’ absences;
•	it was considered that there was an argument for increasing the level for disposals of land property transactions;
•	the Terms of Reference of the Rail Services Panel should include reference to national rail issues;
•	consideration should be given to applying a limit on cumulative totals of  approval of transactions (of which the Board should be aware);
•	a gender-neutral approach should be employed consistently throughout the Standing Orders and equal opportunities should be incorporated into the terms of reference of all the Panels and committees;
•	it was suggested that the name of the Surface Services Advisory Panel should be changed to Surface Transport panel and the name of the Rail Services Advisory Panel should be changed to Rail Transport Advisory Panel.

It was noted that the Executive Management Group will include integration issues within its remit and it was agreed  that this should be incorporated into its Terms of Reference.

It was noted that an additional group, to examine the appraisal of large capital projects, was under consideration.

Following discussion:

(i)	the proposed decision making framework was agreed;

(ii)	Standing Orders 1-5, as outlined in the Board paper, which would give effect to the proposed framework, were agreed;

(iii)	the power to determine the quorum and make initial appointments of members and officers to the committees, groups, bodies of members and officers and bodies of officers as described in the Appendices to Standing Order No. 1 was delegated to the Chair, in consultation with the Commissioner;

(iv)	the power to make any minor drafting amendments to the Standing Orders was delegated to the Commissioner;

(v)	it was agreed that the Standing Orders should be reviewed formally in one year’s time.

15/01	2001/02 BUDGET

A paper outlining the decisions taken by the GLA Assembly on 15th February, confirming the proposed budget allocations within TfL, and reporting on the current position concerning the proposed arrangements for funding proposed programme for 2001/02 was considered. 

Following discussion:

(i)	the budget allocations to individual business units and deliverables against these, as outlined in paragraphs 4.1 to 4.3 and Appendices 1 and 2 in the Board paper,  were agreed, subject to determining a process to deliver the required efficiency savings referred to in paragraph 5.1 of the Board paper;

(ii)	the level of reserves, cash management proposals and monitoring arrangements outlined in paragraphs 4.5 and 4.5 and Sections 6 and 7 of the Board paper were agreed;

(iii)	it was agreed that authority be delegated to the Managing Director, Finance and Performance/Chief Finance Officer to agree borrowing facilities to meet the requirements set out in paragraph 6.2.3 of the Board paper; and

(iv)	the Board confirmed the continuation for 2001/02 of a variable rate overdraft limit of £20 million for TfL.

16/01	FARES

16.1/01	Bus fares Proposals for May

A paper recommending a number of bus fares and ticketing initiatives for implementation in May 2001 was considered.   

The main proposals under consideration aimed at non-regular travellers comprised: 

•	the introduction of a carnet of bus tickets for single bus journeys, to be known as the Saver;
•	the replacement of the two current zonal One Day Bus Passes by a single ticket valid across London; and 
•	a reduction in the price of All-zones Bus Pass season ticket. 

Board Members agreed  that it would be desirable if tickets were available for sale at a wide variety of outlets, such as Underground stations, newsagents close to stations, ticket machines at roadsides and petrol stations. 

Following discussion, the Board agreed to recommend to the Mayor the package of fares measures as outlined in paragraphs 7 to 10 in the Board paper, to be introduced with effect from 20 May 2001. 

 16.2/01	Targeted Fares Initiatives

A paper outlining the fares initiatives of free travel for schoolparties visiting cultural events and discounted fares for travelcard holders on riverboat services was considered. It was noted that these initiatives had been agreed in line with the Mayor’s strategy on fares, as set out in previous papers to the Board.

It was noted that Annex A provided for a maximum group size of 10 school children with one accompanying adult, but it was considered that this should be increased to provide for more than one accompanying adult per group. 

The fares initiatives, as outlined, were noted.

17/01	RESPONSES TO THE MAYOR’S DRAFT STRATEGIES

It was noted that the Mayor had issued his draft Transport Strategy for public consultation in January 2001, with a closing date for comments on 30th March 2001.  A special meeting of Board members had been held on 20th February to discuss the draft Transport Strategy and the Economic Development Strategy. A detailed note of the meeting would be circulated to Board Members.  

A paper summarising the main points raised by Board Members at that meeting and also the comments of TfL Officers was considered.  In addition, two papers summarising the comments from TfL Officers on the Mayor’s draft strategy on Air Quality and Biodiversity were considered. 

It was noted that the Mayor’s Spatial Development Strategy was of particular relevance and the fifteenth draft was shortly to be published.

Following discussion, the Board noted the comments made by the Board and TfL Officers on the four following draft strategies:
•	Transport Strategy
•	LDA draft Economic Development Strategy
•	Air Quality Strategy
•	Biodiversity Strategy 

In addition, the Board agreed that the comments should be forwarded to the GLA (the LDA in the case of the Economic Development Strategy), along with the detailed comments from Board Members and TfL Officers.  It was further agreed that Board Members should forward additional comments to the Commissioner. 

Joyce Mamode left the meeting. 

18/01	TAXI ISSUES

The Chair introduced this item with a statement regarding his view of the need to address a number of issues affecting supply and demand of taxis and minicabs in London, and a number of strategic issues affecting the augmentation of, and facilities granted to the service suppliers; and the service levels sought by all  sections of London’s population. 

18.1/01	Taxi fares in 2001

A paper outlining proposals for a change in fares for licensed London taxis was considered.  It was noted that the proposed increase was the first change in fares since TfL had assumed control from the DETR. 

During discussion, it was noted that at this stage, and pending further strategic discussions with the taxi trade (and the upgrading of taxi meters to a universal standard) there would be no change in the night tariff.

Following discussion, it was agreed that:

(i)	the licensed basic taxi tariff would be revised on 28th April 2001;

(ii)	the basic tariff should be increased to achieve a 5.5% increase in the average taxi fare, as specified in the Appendix to the Board paper; and

(iii)	no change will be made to the minimum fare, or to extra charges;

It was further agreed that the Commissioner be authorised to sign the London Cab Order 2001 to bring the new tariff into effect.

18.2/01	Private Hire Consultative Document

A paper seeking approval to finalise and issue the consultation document on Driver Licensing for London’s private hire drivers and to review the existing private hire operator regulations was considered.

Following discussion, the Board agreed that, subject to any further suggestions from Board Members (by 23rd March), the consultation document be finalised and issued by the Commissioner.

It was noted that the responses, when considered, should be reported to the TfL Board.

It was further noted that the existing Operator Regulations will be reviewed. 

19/01	FUTURE OF EAST THAMES BUSES

A paper outlining the future options available for London Buses Limited (trading as East Thames Buses), which had been discussed by the Management Board on 27th February, was considered. 

The Board agreed the recommendations made by the Management Board on 27th February, as outlined below, subject to the Director of Bus and River Services obtaining further legal advice.

The Management Board recommended that, subject to an ability to pass a “best value” test for the 2001/2 budget, the following items should be pursued as soon as possible:

(a)	the current routes operated by East Thames Buses (ETB) should not be re-tendered for the present time and ETB should continue to operate these routes;

(b)	ETB will not bid for any other routes;

(c)	ETB should be established as a basis for market intervention in the event of operator failure, excessive high bidding or unremedied poor performance;

(d)	the financial and operational performance of ETB should continue to be separately reported to TfL;

(e)	for as long as ETB does not tender for bus routes, the Director of Bus and River Services should be appointed as Chair of ETB but that in all other respects ETB will remain independent of LBSL; and

(f)	ETB should be managed separately, locally and appropriately for an operation of its size; and a permanent Managing Director should be sought through competitive advertisement.

The Board agreed to delegate to the Commissioner authority to approve any changes that may arise to the recommendations set out above.

It was noted that Transport Trading Limited, as the Majority Shareholder,  will effect the appointment of the Director of Bus and River Services as Chair of ETB. 

20/01	PROCEDURAL ITEMS

20.1/01	Chair’s Actions for endorsement

The following Chair’s actions, which had been taken since 23rd January 2001, were endorsed:

Date	Action	Taken By	
13th February 	Advance payment of compulsory purchase compensation payable to London borough of Enfield.	D. Wetzel 	
			
 15th February	Operation and maintenance of the Docklands Roads into the A13 DBFO contract.
	D. Wetzel	
 22nd February	Approval for London Bus Services Ltd to take a lease of office space and parking spaces at Trinity Business Park, Chingford.
	D. Wetzel	

21/01	ANY OTHER BUSINESS 

There being no further business, the meeting closed at 12.30 p.m.

.……………………………………….
	Chair