Reform of the Highways Agency goes too far and proposed benefits of doing so could be achieved through better management, the chair of the Transport Select Committee has said.

Louise Ellman wrote in a letter to the Transport Minister Robert Goodwill on Monday: “Overall we are not convinced by the case for establishing a Government owned company, given that the Highways Agency’s remit is not being extended. The proposed benefits seem achievable through better management of the existing Highways Agency.”

Ms Ellman added: “We see no reason for the upheaval and expense a change of structure would entail,” after Mr Goodwill had earlier stated that the proposed changes are not a precursor either to privatisation or charging for roads at the point of use.

In principle Ms Ellman said the Transport Select Committee welcomes the proposed five year funding packages for infrastructure to encourage long term planning. “However one Parliament cannot bind the decisions of the next, so the new system does not provide absolute certainty.”

She noted too that Mr Goodwill told the Committee on 24 February that the reformed Highways Agency will be able to offer higher salaries to attract a wider range of experienced recruits. But, she added: “We received no evidence to substantiate the claim that the Agency finds it hard to compete for staff in the international labour market.”

The Transport Select Committee is set to publish a report into the Highways Agency’s proposed reforms in April.

A Department for Transport spokesman said: “We are glad that the Committee agrees with us on the need for longer term certainty and greater long term planning. Uncertainty has dogged the highways sector for decades and fundamental reform is needed to fix it. We are currently considering responses to our proposals outlined in the Transforming the Highways Agency consultation and Ministers will set out their decisions in the next few weeks."

Later this year the first Roads Investment Strategy is set to be published and the Highways Agency's functions are set to be transferred to a new company in April 2015.

(Photo: Highways Agency)

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