Option 30 Report
1 Executive Summary
Background
The National Roads Maintenance Review (Review) is being taken forward in phases. Phase 2 was published in 2011 and identified 30 separate options to be taken forward. One of the key options identified was Option 30 "to undertake an assessment of the optimum arrangements for the management and maintenance of roads in Scotland".
This report is in response to the Review brief for Option 30, received on 10 February 2012, which was to 'Explore the optimum delivery of road maintenance services'. The research study has been undertaken by a Task Group managed by a former Chair of SCOTS and comprised representatives from Halcrow, PricewaterhouseCoopers (PwC) and the Improvement Service. The report has been prepared in consultation with the Review Steering Group which included representatives from SCOTS, the SRWC, COSLA, SOLACE, and Transport Scotland.
The report looks at the optimum delivery of the management and maintenance of roads services in Scotland and explores amendments to existing structures including shared services and without a complete change of roads authorities' functions but also considers the potential for new roads authority structures. An important consideration for the research work was that it had to be "outcome focussed", based on deliverability and compatibility with the Christie Commission recommendations and Public Sector Reform principles.
Approach
The first step in approaching the work was to identify the current models of service delivery in place across Scotland. This exercise was carried out in order to gain a comprehensive understanding of the approach to delivering roads maintenance and the levels of expenditure being incurred. The need to review delivery arrangements is being recognised by a number of roads authorities as are the financial challenges arising from budgetary pressures.
In considering potential options for change it was important to identify objectives and associated criteria for the assessment process. This allowed options which have been developed to be assessed in a consistent way which complied with guidance on public sector reform.
Objectives were identified as part of the assessment process for a range of options for delivery structures. A detailed methodology was developed to allow a rigorous qualitative assessment of generic options, building on high level objectives. The methodology was developed with particular reference to the work of the Christie Commission covering matters such as social and economic wellbeing, accountability and the wider public sector reform. COSLA leaders endorsed the methodology and its use in assessment of options.
The project brief identified five high level generic options for roads service delivery:
- A - Current arrangements
- B - Structural change
- C - Shared services
- D - Combination of structural change and shared services
- E - A new means of delivery based on UK or international best practice.
The assessment of the sub-options indentified under structural change and shared services was carried out using the objectives and the assessment criteria. It was of a qualitative, high level nature using the professional judgement and experience of members of the Task Group including advice from legal and tax experts. It was subject to a Peer Review by representatives from SCOTS, COSLA, SOLACE, Transport Scotland and the Improvement Service.
Findings
The key findings of the report are detailed below:
1. Delivery of roads services in each of the 33 roads authorities varies, with a wide range of management arrangements and roads services being delivered as part of an integrated front line service model as opposed to a standalone one. Current arrangements are unlikely to be sustainable and indeed some local authorities are already implementing or seeking to implement change from existing delivery models. As such, there appear to be wider opportunities to improve the delivery of road services over the short, medium and long term.
2. The various approaches to financial reporting across roads authorities should be standardised, where possible. This should be linked to any work developing more robust Key Performance Indicators and benchmarking in the wider public services. In addition, there should be further research work undertaken on international best practice.
3. A range of options have been reviewed for reconfiguration of the delivery of roads services that could potentially generate economies of scale and fuller utilisation of existing capacity and skills. These have been classified into two broad categories:
a. Shared Services (Option C) and sub-options range from specific maintenance works through to maximum sharing of a complete roads service. These approaches could involve local and/or trunk road authorities. The qualitative assessment found that all seven sub-options can be taken forward in the short to medium term. If the anticipated benefits of shared services are not sufficiently realised over the short to medium term, then exploration of structural change should be accelerated
b. Structural Change (Option B) and sub-options incorporate reform of the current structure of road authorities to form a new roads authority or authorities. The qualitative assessment carried out identified that six sub-options met the objectives and initial screening assessment criteria. The implementation of any such structural change is likely to be in the medium to long term. Structural change should only be considered if the anticipated benefits of shared services are not sufficiently realised. In any event, any structural change is likely to require detailed assessment in the shorter term and consideration of any necessary convergence of contractual commitments.
4. The standardisation of a variety of strategies could be developed pan Scotland in the short term and progressed as a pilot.