4.8 The PFI contractors' assumption that a vehicle test could be completed within an 18-minute booking slot was the cornerstone of their vehicle testing solution. On this basis, they estimated that there would be adequate capacity for vehicle testing for the lifetime of the contract, and for DVTA to begin testing cars at three years old, in line with the current practice in Great Britain. However, until September 2004, MOT centres operated booking slots of between 21 and 25 minutes. Furthermore, in 2004-05, the first year in which it had intended to introduce the full vehicle test as specified by the contract, DVTA's business plan provided for a 24-minute test, six minutes longer than the contractual requirement. DVTA told us that, although many test centres had been achieving lower test times prior to this, booking slots had not been reduced accordingly.
4.9 In October 2004, following the end of the industrial action (see paragraph 2.4), DVTA introduced new booking slots, based on test times actually being achieved at its 15 test centres, which ranged from 19 to 22 minutes, but which still did not include the full range of test items required by the contract. However, as test centre managers have traditionally had the discretion to leave slots unbooked for contingency purposes, we consider that there is a risk that the improved productivity envisaged from the revised arrangements may not be achieved. DVTA told us that the policy of permitting managers to leave slots unbooked was part of its long-term strategy of developing a culture of accountability, with managers being given added responsibility for centre performance. DVTA considers that this will achieve improved results in the long term. However, this also has the potential to weaken DVTA's position in ongoing negotiations with the contractors.
In view of this, we recommend that DVTA carries out regular, ongoing reviews of the levels of unbooked slots across each of its centres to assess the impact of these on overall productivity levels.
4.10 Consultants engaged by DVTA have estimated that full emissions testing, which DVTA introduced in March 2006, could result in booking slots increasing to between 25 and 29 minutes. Such an outcome would result in capacity becoming exhausted in some test centres as early as 2006-07, and at 10 of the 15 centres by 2010-11. Furthermore, these estimates are based on DVTA's current practice of testing cars at four years old or more, and any move to testing three-year-old cars (see paragraph 4.8) would result in capacity at test centres being exhausted even earlier. Even if DVTA succeeds in reducing test times to an average of 21 minutes, it envisages a requirement to begin constructing new lanes at some centres within the next two years.