4 October 2010

Transport Minister, Theresa Villiers, felt that greater accountability would lead to a transformed rail service. Speaking at the conference event hosted by ATOC were Transport Minister, Theresa Villiers, Paul Plummer from Network Rail, Adam Marshall from the British Chamber of Commerce, Tom Smith of the ATOC, Christian Wolmar a rail journalist, and Andrew Pearce from the Daily Mail, was in the Chair.

Ms Villiers stated that rail is at the heart of the Government’s transport strategy but the cost of running the network has to be reduced. A number of proposals are being considered under current consultations, including incentives for private sector investment in rail and longer franchises, she explained. Longer franchises would help ensure longer-term relationships with Network Rail, she anticipated. Transport would incur some of the planned cuts under the Comprehensive Spending Review, making value for money in rail an imperative, the Minister stressed.

The volume of rail transport had increased while the cost of rail had become increasingly unsustainable, Tom Smith said, noting that commuter fares in the South East compared badly with the rest of Europe. This had been combined with greater state intervention than had been envisaged, he observed, outlining the limitations in rail since privatisation. The present Government had a huge opportunity to make a success of the railways, he felt. He also hoped that rail would be recognised as part of the Department for Transport’s (DfT) core strategy combined with an industry that was ready to address their own shortcomings.

There was an opportunity for a revolution in rail, however there was more state control in rail than under public ownership, Christian Wolmar reflected. Greater integration was needed in the rail industry in particular to help reduce costs, he said. High-speed rail (HSR) was a distraction at present, Mr Wolmar said, calling for a greater concentration on electrifying the railway. He anticipated that there would major restructuring of Network Rail in the next few years.

Disagreeing, Paul Plummer stressed that HSR was vital for increasing capacity on the rail network. This would contribute to growth, he added. Value for money could be secured with stronger partnerships between operators and Network Rail, he claimed.

During the question session, the panel was pressed on the merits of HSR. Christian Wolmar explained that there were ways to increase capacity to rail without turning to HSR. The UK had “missed the boat” on this option, he claimed. In disagreement, the Transport Minister said this was a vital project to increase capacity on the rail network. By ensuring adequate plans and consultations were undertaken now, it would be possible to roll out HSR separately from other rail projects, she explained. Mr Marshall voiced support for HSR as a network. It would help speed up rail journeys but would also free up rail capacity for freight, he observed.

Pressed on the number of rail operators in the UK, Mr Smith anticipated that Government plans would lead to an increase in new entrants with an appetite to invest new resources in rail.

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