Asked by: Martin Vickers (Conservative - Cleethorpes)
Question to the Department for Transport:
To ask the Secretary of State for Transport, with reference to his Department's policy paper, A strategic vision for rail, published on 29 November 2017, what steps his Department plans to take to encourage more open access rail competition with franchises.
Answered by Paul Maynard - Parliamentary Under-Secretary (Department for Work and Pensions)
As the Secretary of State for Transport set in his November 2017 document A Strategic Vision for Rail, through the use of the Department’s franchising powers public procurement through competition will continue to be our central policy for train service operations, reflecting the significant benefits it has brought for passengers.
However, whilst it is for individual operators to consider potential applications, we have made clear that we welcome new open access applications where these do not significantly impact on affordability or the value for money from public investment in the rail network, and where they complement franchised services. Ultimately these applications are for the Office of Rail and Road (ORR) to determine and government has no contractual relationship with open access operators.
As the Competition and Markets Authority made clear, a pre-condition for greater open access under their preferred Option 1 is that open access makes an appropriate contribution towards the costs of the railway. We are taking forward consideration of this option, both through working with the ORR on charging reform and the public service obligation (PSO) levy. We are therefore pleased that the ORR is taking forward reforms to the track access charging framework as part of its Periodic Review 2018 process.
We are considering the responses to the public service obligation levy consultation, and will continue discussions with the ORR on the potential links between charging reform and the PSO proposals. We intend to our response early next year.
Asked by: Martin Vickers (Conservative - Cleethorpes)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what progress his Department has made on examining and delivering the Option 1 recommendations of the Competition and Markets Authority 2016 report, Competition in Passenger Rail Services in Great Britain; and if he will make a statement.
Answered by Paul Maynard - Parliamentary Under-Secretary (Department for Work and Pensions)
As the Secretary of State for Transport set in his November 2017 document A Strategic Vision for Rail, through the use of the Department’s franchising powers public procurement through competition will continue to be our central policy for train service operations, reflecting the significant benefits it has brought for passengers.
However, whilst it is for individual operators to consider potential applications, we have made clear that we welcome new open access applications where these do not significantly impact on affordability or the value for money from public investment in the rail network, and where they complement franchised services. Ultimately these applications are for the Office of Rail and Road (ORR) to determine and government has no contractual relationship with open access operators.
As the Competition and Markets Authority made clear, a pre-condition for greater open access under their preferred Option 1 is that open access makes an appropriate contribution towards the costs of the railway. We are taking forward consideration of this option, both through working with the ORR on charging reform and the public service obligation (PSO) levy. We are therefore pleased that the ORR is taking forward reforms to the track access charging framework as part of its Periodic Review 2018 process.
We are considering the responses to the public service obligation levy consultation, and will continue discussions with the ORR on the potential links between charging reform and the PSO proposals. We intend to our response early next year.
Asked by: Martin Vickers (Conservative - Cleethorpes)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment he has made of the effects of the Strategic Freight Network Fund during Control Period 5 to date.
Answered by Paul Maynard - Parliamentary Under-Secretary (Department for Work and Pensions)
Government is investing £235 million up to 2019, as part of the Strategic Freight Network Fund specifically to support investment in infrastructure focused on delivering key capacity and capability enhancements to support the growth of the rail freight sector. The benefits of schemes funded through the Strategic Freight Network Fund include signalling and track improvements which allow longer trains, increased speeds and more efficient journeys.
Asked by: Martin Vickers (Conservative - Cleethorpes)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment he has made of the effect of the level of public investment in rail on the level of freight access charges.
Answered by Paul Maynard - Parliamentary Under-Secretary (Department for Work and Pensions)
Setting the framework for track access charges is a matter for the Office of Rail and Road (ORR). ORR is currently working with the industry to review the structure of charges for CP6 (from 2019) as part of their Periodic Review 2018 process.
As part of the Government’s Rail Freight Strategy, the Department for Transport will continue to support ORR's work to develop appropriate track access charges for freight from CP6, including by understanding the effect of the level of public investment in rail and overall impacts on the rail freight industry of any changes.
Asked by: Martin Vickers (Conservative - Cleethorpes)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what plans he has for the level of support to rail freight network investment during Control Period 6.
Answered by Paul Maynard - Parliamentary Under-Secretary (Department for Work and Pensions)
The rail industry has provided its initial advice to Ministers for Control Period 6 (CP6) (2019-2024), which we are carefully considering. In addition, the Freight Network Study, which considers the needs of the rail freight industry for future control periods was published by Network Rail on 7th April 2017. In due course we will make announcements on the outcomes we want to see from the railway as a whole during CP6, as well as engage with stakeholders. This will include consideration of the needs of rail freight.
Asked by: Martin Vickers (Conservative - Cleethorpes)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment he has made of requirements for rail freight network investment during Control Period 6.
Answered by Paul Maynard - Parliamentary Under-Secretary (Department for Work and Pensions)
The rail industry has provided its initial advice to Ministers for Control Period 6 (CP6) (2019-2024), which we are carefully considering. In addition, the Freight Network Study, which considers the needs of the rail freight industry for future control periods was published by Network Rail on 7th April 2017. In due course we will make announcements on the outcomes we want to see from the railway as a whole during CP6, as well as engage with stakeholders. This will include consideration of the needs of rail freight.
Asked by: Martin Vickers (Conservative - Cleethorpes)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what plans he has to maintain the level of support to the freight industry after the UK leaves the EU and is no longer part of the Mode Shift Revenue Support scheme.
Answered by John Hayes
The Department for Transport continues to support the freight industry and leaving the EU will have no impact on existing spending plans for support to the freight industry though either Mode Shift Revenue Support (MSRS) or the associated Waterborne Freight Grant (WFG) scheme.
Neither is an EU scheme. They are British schemes with EU State Aid approval through to 31 March 2020 when the current schemes end.
The Scottish and Welsh Governments set their own budgets for freight grant schemes. The total combined expenditure for England, Scotland and Wales for MSRS and WFG is expected to be within the £110m maximum five year estimate in the State Aid clearances for 1 April 2015 to 31 March 2020. However, this estimate could be exceeded by up to 20% without requiring further EU approval.