The government has defended its controversial decision to reform the Highways Agency, and revealed the roles the newly installed strategic road network (SRN) watchdogs will play as part of the changes.

Responding to the Transport Committee’s Better Roads Report from May, which labelled plans to transform the HA into a ownership structure similar to Network Rail as an unnecessary and potentially costly mistake, the Department for Transport (DfT) said the overhaul was the only option.

“We do not believe a further variant of the status quo is sufficient. There have been many decades of experience across different governments which have demonstrated that the current arrangements have not encouraged a long term approach to planning infrastructure nor to secure funding,” the DfT said.

"The problems [Alan Cook] highlighted [in his 2011 report] were deep-seated and structural, and securing the potential savings in a challenging goal."

The DfT maintains that an arms'-length approach, as used in the Netherlands, Austria and Sweden, is best. “This will allow the agency to undertake the necessary organisation and cultural change to meet the step change demanded to deliver an ambitious investment programme,” it said.

"Establishing the agency as a legally-separate company, clearly independent from government, will ensure a transparent and binding relationship, that the funding settlement is robust and there is a clear 'performance contract' through the Road Investment Strategy."

It added that as an executive agency of the government - as it is at present - it has less flexibility over day-to-day operations, procurement and contract management compared to infrastructure providers in other sectors.

Independence

The DfT has, today, also set out how the two independent bodies that will scrutinise the performance of the SRN will operate once the HA becomes a private company.

The extended responsibilities of transport watchdog Passenger Focus (to become Transport Focus) and the Office of Rail Regulation (ORR), will be introduced as amendments to the Infrastructure Bill, which is due to be discussed in parliament next week.

Passenger Focus, which recently recruited former Road Haulage Association chief executive Geoff Dunning, will be responsible for gathering views from stakeholders and users of the SRN to help inform policy and decision-making. It will operate as two parts: Transport Focus- passengers, for its work with the bus, rail, tram and coach industries; and Transport Focus- road users.

The ORR will monitor the performance and efficiency of the transformed HA, checking that it has complied with its terms of licence and delivering what road investments are required. It will do this through a subsidiary called Strategic Road Network Monitor.

The government has claimed the reform of the HA will save taxpayers £2.6bn during the next ten years thanks to greater efficiencies and the surety of long-term funding.

The government aims to have the reformed HA live by the spring of 2015.

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