CEO sought for National Infrastructure Commission

Lord Adonis to act as interim chair until a permanent chair is appointed following the passage of legislation; Chancellor to oversee new organisation.

Jackie Whitelaw
05 October 2015

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National Infrastructure Commission

The National Infrastructure Commission announced by Chancellor George Osborne at the Tory conference  is to be set up immediately within Treasury on an interim basis and “will later be put into statue”.

Lord Adonis will be its first, interim chair charged with establishing the organisation. He will be working four days a week “until a permanent chair is appointed following the passage of legislation”.

"I hope it will be possible to forge a wide measure of agreement, across society and politics, on key infrastructure requirements for the next 20 to 30 years" - Adonis 

From the enthusiasm with which industry greeted the announcement that Adonis was to head the body it is fair to say that the infrastructure sector will wanting him continue as its permanent chair. Otherwise loss of confidence, not to say irritation.

Process for recruitmement of a chief executive to run the organisation and assist Adonis is to start immediately.

“The Commission will calmly and dispassionately assess the future infrastructure needs of the country and it will hold any government’s feet to the fire if it fails to deliver,” said Osborne. ‘I am delighted that the former Cabinet Minister and Transport Secretary Andrew Adonis has agreed to be the Commission’s first Chair and help us create Britain’s plan for the future.”

Lord Adonis said: “Without big improvements to its transport and energy systems, Britain will grind to a halt. I look forward to establishing the National Infrastructure Commission as an independent body able to advise government and Parliament on priorities.

“Major infrastructure projects like Crossrail and major new power stations span governments and parliaments. I hope it will be possible to forge a wide measure of agreement, across society and politics, on key infrastructure requirements for the next 20 to 30 years and the assessments which have underpinned them.

“I will sit on the crossbenches in the House of Lords while chairing the NIC, to underpin its independent status.”

According to government “the NIC will provide a comprehensive report on the UK’s infrastructure needs,” government said. “The government will be obliged to respond to its recommendations, either accepting them or setting out how the government will develop alternatives.”

It will report every five years, updating the reports on a rolling basis.

“The Commission will calmly and dispassionately assess the future infrastructure needs of the country and it will hold any government’s feet to the fire if it fails to deliver,” - Osborne

The NIC will be made up of around 25-30 permanent staff, but will have statutory powers to allow it to draw on the expertise of the sectoral regulators, and key national delivery bodies such as Network Rail and Highways England.

The commission’s role is to establish a long-term plan and assessment of national infrastructure needs early in each parliament, setting out what a government is expected to do over the next five years.

It will be overseen by a small board, appointed by the Chancellor, and able to commission research and call for evidence from public sector bodies and private sector experts.

The NIC will start work immediately with an initial focus on:

•  plans to transform the connectivity of the Northern cities, including high speed rail (HS3)

•  priorities for future large-scale investment in London’s public transport infrastructure

•  how to ensure investment in energy infrastructure can meet future demand in the most efficient way

The Commission will publish advice to the government on these issues before next year’s Budget. It will also begin work on a national infrastructure assessment, looking ahead to requirements for the next 30 years.

Northern cities

The NIC will work with Transport for the North on its developing plan to improve the connectivity of the cities of Northern England, including through high speed lines, and publish advice by Budget 2016. It will engage with Network Rail, High Speed 2, Highways England, the Department for Transport, the Treasury and other stakeholders.

London’s transport infrastructure

The NIC will advise the government, by Budget 2016, on the best approach to large-scale future investment in London’s transport infrastructure. It will consult closely with the Mayor for London, Transport for London, and the Greater London Assembly.

Energy infrastructure

The UK’s power sector has a growing problem in matching demand and supply, meaning that keeping the lights on requires a level of redundancy in the system – generation which is not always used, Government said. “The NIC will look at how to optimise solutions to this problem, including through large scale power storage – where innovation is needed to bring down costs; demand management – how to incentivise flexibility in demand so we don’t need as many power stations; and interconnection – how we best link the UK to the markets in the rest of Europe.”

5 year National Infrastructure Strategy

The NIC will provide an assessment of the UK’s infrastructure needs every five years, looking 30 years ahead and examining the evidence across all key sectors of economic infrastructure – including energy, roads, rail transport, ports and airports, water supply, waste, flood defences, digital and broadband. As part of this work it will consider how investment in these sectors can support housing development.

“In doing so it will help to create a better understanding of the UK’s long-term needs for significant new infrastructure to foster sustainable economic growth across the UK,” Government said. “This will help promote forward planning and timely investment decisions, and provide greater certainty for investors.”

Not the third runway

As expected the commission will not get embroiled in the third runway debate or existing regulated industries.

“The Commission’s remit will be to consider future infrastructure of national significance. It will not re-examine existing government infrastructure commitments, and it will not re-open regulatory price controls. Neither will it look at Heathrow and airports in the South East or re-examine the work of the Airports Commission,” Government said.

But it will seek to promote knowledge of and debate on international best practice in the planning, financing and delivery of major infrastructure.