Value for money

Under Section 4(5)(ab) of the 1993 Act the ORR is “to give what appears to it to be appropriate weight to the extent (if any) to which the guidance relates to matters in respect of which expenditure is to be or has been incurred by the Scottish Ministers”.

Under section 4(5C) of the 1993 Act, in performing its duties the ORR must also have particular regard to the interests of those using or who may use railway services, the interests of those providing railway services, the interests of those funding railway services and the general public.

We expect the ORR to have full regard to the funds available to the Scottish Ministers to support the rail industry and the requirement of the Scottish Government to provide that support within its allocated resource and capital budgets, while securing best value for money from that public expenditure.

If the ORR considers that it is necessary to exercise or intends to exercise its duties or undertake an activity in a way that is likely to have a negative or positive, material, financial consequence for Scottish public funding of railways, then we expect the ORR to notify us as soon as is reasonably practicable so that we may make representation to the ORR. In such circumstances, we may seek to conduct a review to ensure consistency of the approach taken or to be taken by the ORR against the HLOS or any policy, strategy or objective in respect of the rail network in Scotland.