Issue - meetings

This report seeks the recommendationof Cabinet to Council for allocation of up to £2.6m from BCP’s Future Fund to improve Pokesdown Railway Station through a jointly agreed financial arrangement with South Western Railway (SWR) and Network Rail (NR). 

Subject to approval of the business case with the Department for Transport (DfT) both SWR and NR are committed to sourcing £3.1M towards the overall project cost of £5.7m to deliver this essential and long-awaited infrastructure with the Council thencovering the shortfall up to a maximum of £2.6m.

The anticipatedscope of work is shown in the outline business case included within this report at Appendix 1. The content is subject to further detailed design and legal consideration.

This investment shall provide essential access benefits to all users but especially for wheelchair users.

RECOMMENDED that Council: -

(a)           approve £2.6m from BCP’s Future Funds be allocated towards the improvement of Pokesdown Railway Station;

(b)           approve that delegated joint authority be given to the Director of Transport and Engineering and the Monitoring Officer in consultation with the Portfolio Holder for Transport and Sustainability to finalise a legal agreement with partners to cover the forthcoming arrangement;

(c)           approve that governance is delegated to the Regeneration Board to monitor and manage project progress including decision making related to any minor variation; and

(d)           note that the Future funds allocation if approved shall include for any BCP costs to progress the technical, financial and legal work required.

Voting: Unanimous

Portfolio Holder: Sustainability and Transport

The Portfolio Holder for Sustainability and Transport presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'E' to these Minutes in the Minute Book.

Cabinet was advised that the report sought the recommendation of Cabinet to Council for allocation of up to £2.6m from BCP’s Future Fund to improve Pokesdown Railway Station through a jointly agreed financial arrangement with South Western Railway (SWR) and Network Rail (NR). 

In relation to this Cabinet advised that subject to approval of the business case with the Department for Transport (DfT) both SWR and NR are committed to sourcing £3.1M towards the overall project cost of £5.7m to deliver this essential and long-awaited infrastructure with the Council then covering the shortfall up to a maximum of £2.6m.

Cabinet was informed that the anticipated scope of work is shown in the outline business case included within this report at Appendix 1, and that the content is subject to further detailed design and legal consideration.

Cabinet was further informed that this investment shall provide essential access benefits to all users but especially for wheelchair users.

The Chairman of the Overview and Scrutiny Board addressed the Cabinet advising that at their recent meeting the Board had comprehensively discussed the report expressing their concern and questioning why council tax payers should provide finance for such a scheme for which the asset isn’t owned by the Council. In relation to this the Chairman of the Overview and Scrutiny Board advised that the Board had proposed the following recommendation in respect of this item:

1. The Overview and Scrutiny Board recommended to Cabinet that it approves the following recommendation as part of the Pokesdown Railway Station Improvement Report:

“That funding options with the Dorset LEP in terms of infrastructure funding are considered and failing that, that BCP Council fully investigates the option of a long term loan to SWR before committing to making this funding allocation”.

2. The Overview and Scrutiny Board recommended to Cabinet that it does not proceed with recommendations as outlined in the report.

The Portfolio Holder advised that he appreciated the depth of discussion at the recent Board meeting but stressed that this was a good idea and urged the Cabinet to reject the recommendations of the Board.

In relation to this the Portfolio Holder advised that alternative ways in which this could be funded had been explored and that there were no funds available from the LEP and no option of providing a loan to SWR.

Councillor Farquhar addressed the Cabinet as Ward Member and expressed that whilst he was supportive of the proposed improvements to Pokesdown Railway Station he had serious concerns with regards to the council financing the improvement and providing the funding to SWR who have failed to fulfil their requirement. In relation to this Councillor Farquhar highlighted that it had been indicated that the council should be the funder of last resort and that there had been no documentation provided by  ...  view the full minutes text for item 90

To consider the Pokesdown Railway Station Improvement Cabinet Report scheduled for consideration on 24 November 2021:

The O&S Board is asked to scrutinise and comment on the report and if required make recommendations or observations as appropriate.

Cabinet member invited to attend for this item: Councillor Mike Greene, Portfolio Holder for Sustainability and Transport

The Cabinet report for this item is included with the agenda for consideration by the Overview and Scrutiny Board.

The Portfolio Holder for Sustainability and Transport, supported by the Section151 Officer, presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'C' to these Minutes in the Minute Book.

The Portfolio Holder and Officers responded to comments and requests for clarification, details included:

·       On the matter of funding, the Portfolio Holder confirmed that this would be a tripartite agreement between BCP Council, South Western Rail (SWR) and Network Rail (NR), with the Council paying up to a maximum of £2.6million. SWR and NR would pay a combined £3.1million toward the final cost. NR had entered the funding agreement as a voluntary partner as their investment would see an enhancement to their own asset. Members heard that the matter of the public subsidy had been well explored and that this was an appropriate way of using the future’s fund.

·       The Portfolio Holder was not aware of any other contractual obligations, similar to what was agreed with Pokesdown Station, within the franchise agreements of other BCP area stations.

·       The Department for Transport (DFT) would not allow any additional spending above contractual requirements by rail companies.

·       On the matter of footfall, Members heard that 350,000 people enter and exit Pokesdown Station throughout a normal year.

·       The matter was at the outline business case and was awaiting approval by the DFT, subject to any requirements they may have.

·       On the matter of financial liability, the Section 151 Officer explained that if one of the other parties were to go bankrupt, the expectation would be for the contractual obligations, in this case the funding contribution and construction of the lifts, to transfer to whoever subsequently takes up the responsibility. If this was not fulfilled or if the asset was not maintained in future, the Council would look to recover the sums that it had invested through this arrangement.

·       Network Rail (NR) are not a revenue-based organisation and their job is to provide infrastructure to the railway industry. South West Rail (SWR) have a responsibility for the station itself. NR do not have an obligation under the existing franchise contract to provide the £1.5million of funding. NR’s investment is to ensure the safety and structural integrity of the bridge that connects the two lifts. However, the Council successfully negotiated for any surplus funds from NR’s £1.5million investment to be put toward the other elements of the station enhancements.

·       The lifts element of the project provides the greatest risk and detailed costings still need to be clarified and agreed. The hope is that once the detailed costings are finalised, the financial risk of the lifts element would reduce.

·       On the suggestion of a loan of funds from the Council to SWR for the purposes of this project, the Section 151 confirmed that this option had not been explored.

·       Several Members raised concerned over SWR seeming to avoid the commitments of their franchise agreement. The Board discussed the use of taxpayer money for this project  ...  view the full minutes text for item 114