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ORR publishes report into aspects of Network Rail’s governance

8 August 2008
ORR/26/08

A report on certain aspects of the governance arrangements at Network Rail and options for change was published today by the Office of Rail Regulation (ORR).

The KPMG report: Network Rail: Membership aspects of governance, provides insights into how the role of the members of Network Rail might be strengthened so that they can be more effective in holding the company to account for its performance. 

KPMG draw out a number of perspectives on the membership structure, including:

  • a lack of clarity about the role of members and the way members are selected; and
  • issues around members having access to appropriate information and analysis in order to take an informed view of Network Rail’s performance, including future prospects, so that they can hold Network Rail to account efficiently.

The report sets out a number of options for consideration to address potential weaknesses, including:

  • changing the way that members are selected and organised;
  • strengthening the powers of members and providing stronger incentives for them to perform their role effectively; and
  • suggestions as to how members might be provided with the information and analysis they require.

Bill Emery, chief executive of ORR, said:

“We welcome this report. The findings will help us to decide whether we should make any changes to Network Rail’s licence condition on corporate governance.

“We also believe that the report will be a useful contribution to the review of governance by Network Rail’s members which is about to commence.

“This is an important issue for Britain’s railways. Improved governance would enhance the accountability of Network Rail’s Board to its members and hence have the potential to provide stronger incentives for the company to rise successfully to the challenges it faces.”

Notes to editors

  1. Copies of the report: Network Rail: Membership aspects of governance by KPMG is available at: http://www.rail-reg.gov.uk/upload/pdf/kpmg_membership.pdf

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