Question to the Department for Transport:

To ask the Secretary of State for Transport, what steps he is taking to encourage Network Rail to (a) monitor its Tier 1 suppliers and (b) ensure SMEs are contracted for high value supply side contracts.

As an arm’s length body, Network Rail operates with independence on day-to-day operational matters from the Department. I do note, however, that more than half of Network Rail’s supply chain are SMEs and that Network Rail is taking the following actions:

• working closely with its Tier 1 suppliers to monitor and encourage relationships with SMEs and has increased direct engagement with SMEs through dedicated working groups, regional forums & roadshows, working alongside industry bodies such as the RIA.
• actively challenging poor practice, promoting the concept of ‘mutual dependency’ and holding Tier 1 organisations to account on issues of fair payment, aligned objectives & terms & conditions, better use of framework arrangements and the abolition of (sub-contract) retentions.
• reviewing its procurement process to remove barriers for SMEs. Within its supply chain, it is generally for Tier 1 organisations to contract SMEs as part of their Tier 2 procurement process. Network Rail is also encouraging Tier 1 suppliers to embrace the SME agenda by implementing regional conferences with their SME / Tier 2 Suppliers.