Transport for London

Minutes of a meeting of the Board
held on Tuesday 25th September 2001, commencing at 10.00 a.m. 
in Room AG16, Romney House, Marsham Street, London SW1P 3PY

Present: 	Ken Livingstone (Chair)	Kirsten Hearn
Board Members:	Dave Wetzel (Vice-Chair)	Mike Hodgkinson 
	Professor David Begg	David Quarmby 
	Sir Christopher Benson	Joyce Mamode
	Steve Norris	Paul Moore
	Tony West 	
	
Special Advisors 	Bryan Heiser 
in attendance: 	Lynn Sloman
	
Others 	Robert Kiley	Peter Hendy
in attendance:	Ian Brown	Susan Fisher
	Betty Morgan	Michael Swiggs
Colin Douglas	Derek Turner
Nicky Gavron	Jay Walder
Richard Smith

47/01	APOLOGIES FOR ABSENCE

Apologies for absence had been received from Susan Kramer and Professor Stephen Glaister.  

A tribute was paid to the late Jimmy Knapp by observing two minutes silence. 

48/01	MINUTES OF PREVIOUS MEETINGS

The minutes of the previous meeting held on 17th July were agreed as a true record.  

49/01	MATTERS ARISING

There were no matters arising. 

50/01	COMMISSIONER’S REPORT

The Commissioner gave a presentation, highlighting key points from his written report.

It was noted that:
•	Papers concerning the development of the Business Plan and Budget for the next fiscal year would be circulated to Members early in October followed by a Special Board Meeting on the 24th;  
•	There was an increasing likelihood of a global economic downturn, exacerbated by the recent terrorist attacks on the United States which was causing TfL to revise downwards over previous forecasts; and 
•	Working relationships with the Metropolitan Police were developing well.  A proposal for a dedicated transport policing unit was in the process of being formalised.

During discussion, the following points were noted:
•	A report on Social Inclusion would be presented to the TfL Board in November including an implementation programme;
•	A Draft Memorandum of Understanding between Metropolitan Police Service (MPS) and TfL was in preparation to establish a dedicated police resource for enforcing strategic transportation corridors.  Resource issues such as staffing and finance would be reviewed within the next few weeks;  

The Commissioner’s Report was noted.

51/01	FINANCE AND PERFORMANCE REPORT

Jay Walder gave a presentation on his Finance Report.  

•	It was noted that the economic circumstances had changed.  London Underground patronage had slowed in recent periods, although London Bus patronage remained strong.  Long term projections continue to show growth. 

During discussion, it was noted that:
•	Following the Business Plan discussions in October, TfL would prioritise and decide the timeframes and resourcing priorities for major projects.
•	Financial payments to, and relationships with, Boroughs were being reviewed;
•	The debate on funding for implementing the Transport Strategy would continue with the Government.

The report was noted.

52/01	ANNUAL STATEMENT OF ACCOUNTS

Jay Walder gave the latest position on the TfL Group Statement of Accounts for the period ending 31st March 2001.  

It was confirmed that the Auditors had noted the accounts.  The Board approved the Statement of Accounts and agreed that the Chief Finance Officer could make any minor adjustments arising from ongoing audit work prior to publication.

53/01	APPROVAL OF TfL FINANCIAL POLICIES

Jay Walder introduced the details of three Financial Policies requiring Board approval in accordance with Standing Order No. 2.

It was noted that the primary purpose was to establish internal approval process and reporting to the Board and that Standing Orders set out the limits of financial authority.  KPMG Auditors had reviewed the policies. 

The Board approved the three TfL Financial Policies; Guarantees and Indemnities, Treasury Management and Borrowing; and Financial Assistance.

54/01	FARES IN AUTUMN 2001 AND JANUARY 2002
Jay Walder introduced a paper detailing the final fares package to be adopted in January 2002.

It was noted that the RPI estimate had fallen, hence the Carnet ticket would not increase in price.  A formal direction from the Mayor for the fares changes to commence in September has been received. A direction would also be required for the January 2002 fares changes. 

The Board noted the final package.

It was further noted that:
•	The Chair requested that the possibility of aligning the fare revision dates and the precept timetable be investigated;  
•	A presentation or private briefing was requested by Board Members to discuss the LUL transition to TfL;

55/01	LONDON’S TAXI AND PRIVATE HIRE TRANSFORMATION PROGRAMME

A paper setting out the Mayor’s proposed package of changes for London’s Taxis and Private Hire trades was briefly introduced by Peter Hendy.

It was noted in particular that:
•	A new fare structure for weekends and evenings was proposed, which it was expected would increase the supply of taxis at these times;
•	The distance any driver would be compelled to drive had been extended from 6 miles to 12 miles; and
•	There were a number of other proposed requirements, including the development of supply and demand analysis and customer satisfaction information to aid better decision making in the future.

During discussion that followed, it was noted that:
•	The completed review on conditions of fitness was expected by Christmas but a decision could take longer;
•	The required numbers of qualified examiners was being increased.  Over 100 people had responded to the recent advertisement for ‘Knowledge Examiners’.  The number and composition of new examiners would be reported to the next meeting;
•	The structure of fees for private hire licencing was relatively inflexible.  The increased cost for a private hire operator moving from 2 to 3 cars was noted and the nature of charging this would be investigated;
•	The possibility of using ‘Purinox’ a fuel designed to give lower emissions (already being tested on buses) as one method to reduce vehicle emissions would be examined;  
•	The TfL review of employee terms and conditions was aimed to be completed before the end of the year and would inter alia deal with pay relativity issues at the PCO.

The Board approved the proposed:
•	tariff change;
•	London Cab Order;
•	increase in taxi licence fees;
•	new knowledge fee; and
•	other policy changes.

The Board authorised the Commissioner of Transport for London to sign a London Cab Order on its behalf to bring the relevant changes into effect.

Joyce Mamode had declared an interest in the above and therefore did not participate in the discussion.

56/01	CONGESTION CHARGING

Derek Turner introduced this paper which updated the Members on progress.

It was noted that:

•	Congestion charging remained on schedule, with an earliest implementation date of January 2003, subject to the Mayor’s decision as to whether to confirm, modify, or reject the Congestion Charging Scheme Order after considering the results of the recent consultation on the order undertaken by TfL;
•	The procurement process for the primary contract had been reduced to two main bidders;
•	Advance discussions had taken place with the DVLA in relation to accessibility of vehicle keepers records by TfL;

Following discussion and it was noted that the primary objective of the Congestion Charging project was to reduce congestion in Central London and not to generate revenue. 

The Board noted the content of this update and required a full briefing on the contractual arrangements and preferred bidder(s) prior to the Board formerly considering the letting of the Core, Retail and Image Management contracts in December.

57/01	SAFETY, HEALTH AND ENVIRONMENT COMMITTEE REPORT 

David Quarmby introduced a paper on the Safety, Health and Environment Committee, which met on 14th September.    

The Board noted the report. 

58/01	ANY OTHER BUSINESS 

The Chair thanked Richard Smith for his contribution to TfL, specifically to the production of the Transport Strategy, and wished him well for the future.  

There being no further business, the meeting closed at 12.25p.m.

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Chair		Date