T&E COMMITTEE REPORT: FULL LIST OF RECOMMENDATIONS AND COMMENTS
Background
Paragraph 13:
The Committee recommends to the Executive that further work is undertaken to strengthen links between transport and land use and pricing policies as part of programmes to raise efficiency in resource use and ensure absolute cuts in greenhouse gas emissions.
Response:
The overarching objective of the Transport Delivery Report is traffic stabilisation over the next twenty years. This is an ambitious target which alone would transform the sustainability of Scotland; reducing the growth in fossil fuels required; helping to meet our existing commitments on emissions of greenhouse gases; and reducing air pollution.
As far as Transport and Land Use are concerned, National Planning Policy Guideline 17 Transport and Planning (published April 1999) sets out policy for the integration of land use and transport policy. Since publication, there have been a number of associated research projects which are informing policy. In addition, in February 2002, a consultative draft Addendum to NPPG17 entitled Transport and Planning Maximum Parking Standards was published, and following consideration of responses, it is hoped to publish this in final form early in 2003. In addition, the Department has recently commissioned research into the feasibility of constructing a land use transport model for Scotland which would enable policy questions on the interaction of land use and transport to be addressed.
The Planning Divisions within the Department are represented at a senior level on the Department's Transport Policy Board, and also on the Transport Research Planning Group. Planning staff play a full part in the work of the Transport Divisions e.g. the Scottish Strategic Rail Study, the Central Scotland Transport Corridor Studies, the study into Rail Links to Glasgow and Edinburgh Airports, and the work ongoing into the redevelopment of Edinburgh Waverley Station.
Paragraph 14:
It is recommended that the Scottish Executive should publish a report during 2003 (updated in subsequent years) setting out its progress towards such targets and towards the aspiration in the Transport Delivery Plan of stabilised road traffic over the next twenty years.
Response:
The Transport Delivery Report (TDR) published in March 2002 included a commitment to review and monitor progress in delivering the vision for a sustainable, effective and safe transport system for Scotland. This will be based on details of indicators to illustrate progress including road traffic volumes and emissions and will be published annually. The Transport Indicators for Scotland were published on 19 December 2002.
Transparency in the Rail Industry
Paragraph 31:
... the Committee believes that the figure of about £250 million a year spent on rail in Scotland from public funds should be more clearly delineated between support for rail infrastructure and support for rail services and rail fares. ... The Committee recommends such an approach is adopted during the process of letting the new Scottish rail passenger franchise.
Response:
The Public Sector contribution towards spending on railways in Scotland can be clearly identified and accounted for. For example, the total amount of support provided to the ScotRail franchise in 2001/02 was £151m Expected support for 2002/03 and 2003/04 is £207m and £211m respectively. The payments which ScotRail receive help pay for track access charges to Railtrack/Network Rail. They are not used to pay for new infrastructure. Where the Executive makes a contribution towards new infrastructure it is on a project specific basis and all contributions are clearly identified and accounted for.
Paragraph 32:
To aid transparency, the Committee also recommends that in the future the Scottish Executive should pay the majority of passenger track access charges directly to Network Rail .
Response:
The Committee's recommendations are noted. However, there are some practical reasons in favour of the train operator paying track access charges rather than the Executive. Direct payment by the Executive to Network Rail of track access charges would fundamentally change the nature of the contract that exists between the train operator and the infrastructure provider. Payment of track access charges by the operator provides him with a degree of influence over Network Rail which could be lost if some other arrangement existed.
In addition, direct payment of track access charges by the Executive would raise some complex State Aids issues which would require approval by the European Commission
Structure of the Rail Industry in Scotland
Paragraph 41:
The Committee therefore recommends that a transparent and accountable Scottish division of Network Rail be established with a requirement to prepare annual reports and business plans .
Response:
The Executive agrees with the T&E Committee that transparency is desirable but, as a private sector company, the management and organisation of Network Rail lies outwith the locus of the Scottish Ministers.
Paragraph 42:
However, the Committee is of the view that the Executive should consider the possible benefits which might be derived from the wider use of the PTE model in Scotland. The Committee recommends that the Executive should conduct a consultation on the advantages and disadvantages of extending SPT or creating other PTEs in Scotland.
Response:
The Committee's recommendations are noted. In January 1999, the Scottish Office issued a consultation paper on Regional Transport Partnerships and the National Transport Forum for Scotland. This paper consulted on whether the Strathclyde Passenger Transport Authority model would be appropriate for use elsewhere in Scotland, and looked at the advantages and disadvantages of creating other PTEs in Scotland. This consultation subsequently helped to inform the development of the voluntary regional transport partnerships and the preparation for the Transport (Scotland) Act 2001. The Executive will expect the delivery of its transport priorities, for example as set out in the Transport Delivery Report, to be assisted by delivery vehicles or organisations appropriate to the particular projects.
Paragraph 47:
The Committee recommends that the Scottish Executive should take early action to ensure that Scottish rail interests are fully represented within the SRA's operations, and to encourage a more coherent overall strategy for rail development in Scotland. The key steps recommended are:
· Closer contacts with the UK government to ensure a higher allocation of SRA funds is made to Scotland; and
· An appreciable increase in direct Scottish Executive funding for rail projects over the next five years (going beyond increases announced by the Scottish Executive on 12 September and which only cover the next three years).
Response:
There already exists a close working relationship at all levels between the Executive and the Department for Transport ( DfT) and the SRA. The Executive will look for ways in which there can be closer co-operation and understanding between itself and colleagues in London. The Executive would be fully supportive of a strengthened SRA presence in Scotland.
Paragraph 48:
The Committee recommends that an overall strategy for rail development in Scotland is further advanced via the establishment of a strengthened concordat between the Scottish Executive and the SRA which should-
· Set up a substantial SRA office in Scotland dealing with franchise supervision, rail enhancements and related work on rail infrastructure improvements;
· Set out firm minimum levels of funding from the Scottish Executive and the SRA for infrastructure and service enhancement schemes for the financial years 2003-04 to 2007-08; and
· Set out a list of planned Scottish Executive / SRA rail projects for the next five years with clear timeframes identified for the delivery of each of these projects.
Response:
The Executive is keen to establish a concordat with the SRA along the lines described by the Committee. Officials have already had preliminary talks with the SRA to move this forward and to develop a draft concordat.
It will, however, not be possible to set out fully levels of funding for the period given as, in most cases, project costs remain to be finalised.
Project costs can be provided on a project by project basis as and when agreed.
Paragraph 49-50:
A proposal for such a concordat was first made by the Committee to the Minister for Transport in its response to the draft Directions and Guidance for the replacement ScotRail franchise. ... The Committee recommends that the Minister urgently moves to implement such a concordat.
Response:
Noted; see response to paragraph 48.
Barriers to Delivery of Rail Improvements
Paragraph 53:
The Committee welcomes the Virtual Board initiative in Scotland but consider that the core representation on the Board should be expanded to include passenger and staff interests, while recognising the need to avoid creating an over-large `talking shop'.
Response:
Although the Executive is a member of the Joint Board, the Joint Board is not an agency of the Executive, and the Executive does not chair the Board. The Executive agrees that the new Joint Railway Board for Scotland should be productive. We see it as facilitating the delivery on the ground of rail projects and as a forum where common problems which are preventing progress can be considered and solutions identified. It is a way of making positive things happen to Scotland's railways. Consequently, the Board needs a sharp focus and its membership should comprise those who can contribute to the resolution of operational problems.
Paragraph 56:
... the Scottish Executive should examine the issue of performance regimes, in conjunction with the SRA and ORR, with a view to selecting benchmarks for performance and procedures for annual reports and monitoring.
Response:
Our Directions and Guidance to the SRA required it to consider and make recommendations on the current system of performance regimes and to suggest improvements to these systems. Subsequently, the SRA has indicated in its Franchising Policy Statement (6 Nov 2002) its intention to develop franchises with "stronger, more understandable and more transparent performance regimes".
Paragraph 57-58:
The Committee specifically is concerned that particular ORR performance regimes relating to proposals for new stations and services might be inhibiting delivery of Scottish Executive and SPT objectives. ... Projects being adversely affected by this performance regime include the planned station at Edinburgh Park and the project to improve frequencies on the Argyle line. ... In evidence, Iain Gray MSP... stated "it is a UK issue. I intend to raise it with Whitehall colleagues over the next few days in order to pursue any possibility that exists of resolving it". The Committee notes this undertaking and recommends that the Committee is informed of the results of these representations as soon as possible.
Response:
The construction of new stations and the introduction of additional services can have an adverse impact on the current operation of the rail system. In some cases, this can result in significant additional penalties being incurred by the operator and Railtrack under the current performance regimes. Failure to overcome this issue can act as a perverse incentive inhibiting improvements to our railway network. Following representations, the Rail Regulator has agreed to rebenchmark the performance regimes relating Larkhall/Milngavie and Edinburgh Park thus enabling these two important projects to now proceed.
Paragraph 61-63:
Conflicting views were expressed in evidence to the Committee on whether a shortage of signalling and design engineers or an unwillingness to attach priority to Scottish projects was inhibiting progress. ... regardless of the true reasons for such delays, the Committee believes that the impasse must be resolved if progress is to be made on smaller schemes offering substantial benefits under STAG within realistic timeframes. ... The Committee would therefore recommend that:
· There should be greater use of competent external contractors to accelerate the design and implementation of projects;
· The Scottish Executive should collaborate with relevant parties in the expansion of training and retraining of staff in appropriate skills;
· The SRA should identify the block funding allocations to be made available to smaller Scottish projects on a rolling five year basis; and
· The Scottish Executive should identify the block funding allocation to be made available for smaller rail enhancements on a rolling five year basis.
Response:
The Executive welcomes the Committee's recommendation that greater use of suitably qualified external expertise is made to accelerate the design and implementation of rail projects. This approach is already being taken, for example in the development of the Stirling-Alloa-Kincardine project.
The SRA is establishing the National Rail Academy which is aimed at addressing skill shortages across the entire UK rail industry. The Executive is supportive of the SRA in this initiative. The Executive is eager to collaborate with other parties on skills and in the Transport Delivery Report indicated that it would work in partnership to put in place a Scottish strategy for bridging skills gaps across all transport modes.
The Industry already makes extensive use of external contractors. For example, almost all of the maintenance work undertaken on the network is carried out by contractors engaged by Network Rail.
The costs of smaller projects are considered by the Executive - if an application has been made for Executive funding - on a case by case basis, as the cost of these projects are finalised.
Funding Improvements to the Rail Industry
Paragraph 79:
There is a... possibility that express service improvements between Edinburgh and Glasgow and north from both cities to Aberdeen and to Inverness could offer encouraging results both financially and under STAG appraisal. This may also apply to improved rail services for Prestwick Airport and in later stages of rail links to the airports at Glasgow and Edinburgh. ... The Committee recommends that the development of these projects is advanced to the next stage in the planning process.
Response:
The Committee's recommendations are noted. The next ScotRail franchise will be enhanceable to enable to new services to be introduced and incorporated into the franchise. However, we need to identify which enhancements represent the best value for money in terms of return received for investment made. The Scottish Strategic Rail Study and the Central Scotland Transport Corridor Studies will help to identify priorities for rail enhancements. Output from the Corridor Studies is being examined and the final reports on the Strategic Rail Study and rail links to Glasgow and Edinburgh airports are expected shortly. Subject to appropriate value for money tests being met, resources will be allocated to help move the development of rail links to these two airports.
Paragraph 80:
The Committee recommends two key priorities for action in order to achieve a deliverable vision for the Scottish rail network as part of a robust strategy for integrated, sustainable and inclusive transport. The first priority is to determine those schemes which can be completed within budget by 2007. The second is to sharpen the focus for a disciplined evaluation of projects necessary to maintain and accelerate the momentum of rail expansion to 2012 and beyond. Confidence in, and funding for, such projects will be dependent on proof of progress on shorter-term delivery. The two priorities for action identified by the Committee are therefore complementary.
Response:
The Transport Delivery Report sets out the Executive's priorities for rail projects over the next 10 years. For example, Waverley Station redevelopment, rail links to Glasgow and Edinburgh airports and progressing the Central Borders Rail Link.
These projects will take time to develop and deliver. For example, following on from the study currently underway which is aimed at identifying a preferred route for rail links to Glasgow and Edinburgh airports, further consultation by the promoter with the landowners, the industry and BAA amongst others would be necessary before a Bill could be placed before the Scottish Parliament. This is unlikely to be completed until 2004. The need to allow time for parliamentary scrutiny of the Bill would suggest the earliest date for progressing either airport rail link to design and construction stage would be 2005 with both railways likely to become operational towards the end of the decade.
Paragraph 81:
It is recommended that these projects be incorporated in the proposed Scottish Executive / SRA Concordat and that a commitment is given for completion within five years. The specific projects are:-
· Initial capacity improvements at Edinburgh Waverley and the related provision of Edinburgh Park station (providing the capacity required for improvement in the frequency of trains using Waverley, allowing expanded inter-city services and aiding further growth in rail commuting, including options such as Edinburgh South Suburban Services and extra trains from West Lothian and Fife).
· Lengthened platforms to permit longer trains to the Ayrshire coast, East Kilbride, Bathgate and Fife;
· Restoration of quadruple track between Shields Road and Paisley Gilmour Street, to provide extra capacity for freight, Ayrshire coast passenger trains (including Prestwick airport) and potential services to Glasgow Airport;
· Provision of extra passing loops between Barrhead and Kilmarnock and Aberdeen and Inverness (allowing improvements in frequency and reliability)
· Reopening of the Stirling-Alloa-Longannet line (allowing freight to be diverted away from the Forth Bridge and the busy stretch of line through Linlithgow)
· Electrification of the Rutherglen-Whifflet line (permitting diversion of present services to the Argyle Line and their extension to central Lanarkshire/Wishaw; also releasing capacity at Glasgow Central High level)
· Integrated provision of quarter-hourly services from Glasgow to Milngavie and (using the Argyle line) from Glasgow to Hamilton with half these services extended over a reopened and electrified branch to Larkhall.
Response:
The priorities for rail enhancement schemes in Scotland are set out in the Executive's Transport Delivery Report. See the response to paragraph 79.
Paragraph 83:
The Committee recommends that the Scottish Executive should conduct a review of the potential merits of implementing the Glasgow Crossrail project and a Scottish express rail network.
Response:
See the response to paragraph 79.
Paragraph 87:
The Committee would recommend the early use of STAG procedures to ascertain appropriate levels of spending on rail safety in Scotland over the next five and subsequent ten years.
Response:
Rail safety is Reserved and policies and associated costs would be a matter for the Department for Transport rather than the Executive. The British Transport Police run a number of campaigns with a safety message. Their main source of funding comes from the rail industry.
Paragraph 90:
The Committee therefore recommends that a higher passenger target should be adopted for the period between 2002 and 2006 and that a rail freight growth target should be set for 2003 to 2006.
Response:
The Executive notes that the Committee wishes an increase in the Executive's target for rail growth (5% increase in rail passenger journeys between 2002 and 2006). However, significant growth in rail use has already been achieved and without major enhancement to the network and services, the prospect for future growth is limited. It is unlikely that any major enhancements to the network will be operational until after 2006, thus further constraining the amount of growth possible during the next 4 years. The Executive has however announced its intention enable the provision of 22 new 3 carriage trains which will enhance passenger capacity and tackle overcrowding.
Paragraph 91:
The Committee recommends that a report should be published on an annual basis setting out the progress being made to implement the projects identified by the Committee and the Scottish Executive as priorities.
Response:
The Executive will continue to keep the Parliament, the Transport and Environment Committee and the public up to date on all the priority projects and give regular updates on progress.
ScotRail Replacement Franchise
Paragraph 104:
The Committee recommends that the Scottish Executive should conclude arrangements for the provision of extra rolling stock by December 2002 as part of an orderly transition to the new, and possibly delayed, franchise.
Response:
Agreed. On 17 December the Scottish Executive announced that it had reached agreement with National Express, the parent company of ScotRail, to proceed with a tendering process to procure 22 new 3 carriage trains. The first trains are expected to be delivered in the autumn 2003. This will tackle overcrowding, improve reliability and the quality of journey on Scotland's rail passenger network as well as enhancing the quality and depth of the franchise.
Paragraph 108:
The Committee therefore recommends that the Executive should:
· Conduct and publish an appraisal of whether public transport fares, including rail and multi-modal tickets, reflect the objectives of the Transport Delivery Report;
· Require evaluation within the franchising process of both the financial impact and the social benefit of possible revisions of fare levels and fare structures within Scotland; and
· Provide clarity regarding the distribution of Executive and SRA funds between support for rail services (which includes spending on fares) and spending on infrastructure in Scotland.
Response:
The potential social, economic and financial impact of revising fare levels and structures has already been considered as part of the Scottish Strategic Rail Study and is currently being examined in more detail as part of the refranchisng process.
Paragraph 109:
The Committee recommends that bidders for the replacement franchise should be asked to indicate how far changes in fare specifications might influence their bids.
Response:
Agreed.
Paragraph 113:
However, since future franchise payments will be a direct responsibility of the Scottish Executive, answerable to the Scottish Parliament, the Committee considers it desirable that there should be a means of consultation on the additional enhancements (and their costs) which are being offered by bidders beyond a base service specification.
Response:
Subject to issues of commercial confidentiality, the Executive wishes the franchise re-letting process to be as open as possible .
Paragraph 114:
However, the Committee recommends that the Executive allocates any savings in the revenue support for the new franchise to a fund for further rail improvements, including fare changes and capital projects.
Response:
The extent to which savings can be used elsewhere will depend on the bids received and the overall quality of the package.
Paragraph 116:
With respect to resolving the tensions between consultation and confidentiality, it is recommended that, as part of the franchising process, t he Scottish Executive should invite the Transport and Environment Committee and other consumer stakeholders such as the Rail Passengers Committee, to give an opinion on their preferences on the use of increased public funds for revenue support and capital purposes.
Response:
A wide range of stakeholders, including consumers were consulted in November 2001 via the Executive's consultation paper, "Strategic Priorities for Scotland's Railways". This led to the list of priorities for the new franchise set out in the Directions and Guidance issued to the SRA in June 2002. The Executive will consider representations made at any point in the process.
Local Authority Involvement
Paragraph 119:
In these circumstances, the Committee considers that the major driver in improvements across Scotland should be the Scottish Executive working in conjunction with the SRA and other partners.
Response:
The Executive has a productive working relationship with the SRA. It expects this relationship to continue throughout the franchise reletting process.
Anglo-Scottish Services and Continental Links
Paragraph 125:
Nevertheless, the Committee would urge the Scottish Executive to make strong representations regarding the present position of Channel Tunnel freight and to ensure adequate compensation for the losses which have arisen for freight operators.
Response:
Scottish Ministers made representations expressing concerns about the impact on freight operators of the decisions taken by the French Authorities to severely limit the passage of freight through the Channel Tunnel by limiting the hours of operation of the Freight Terminal and thus restrict the free movement of goods. Positive progress on resolving the problems has been made.
Paragraph 126:
... the Committee notes that the high-speed route from the Channel Tunnel to the enlarged St Pancras / Kings Cross interchange is due for completion by 2007/08. The Committee recommends that the Scottish Executive should consider the implications for Scotland of the completion of this project.
Response:
The Committee's comments are noted. It is envisaged that completion of the link from the Channel Tunnel to St Pancras/Kings Cross will transform the rail links between Scotland and the continent. Access to mainland Europe will be improved with a simple interchange at Kings Cross.
Paragraph 129:
The Committee recommends that the Scottish Executive commission and publish research on these issues [high-speed rail], taking account of the implications for Scottish rail access of future air policies and the conclusions of the current study of north-south high-speed rail services being conducted for the SRA.
Response:
These issues are already being considered, along with the growth of low cost airlines.
Freight
Paragraph 132-133:
The potential of certain projects to have joint benefits for passengers and freight is also a factor which needs greater consideration in rail planning and priorities. Important examples cited in evidence are:
· The reopening of the Stirling-Alloa-Longannet-Dunfermline line for freight. This would facilitate coal flows to Longannet and general freight movement to and from Fife - including the Rosyth ferry terminal - while improving passenger service reliability and available slots on the busy routes across the Forth Bridge and through Linlithgow. In SRA plans, the project also includes an Alloa-Stirling passenger service, probably extending through to Glasgow.
· Restoration of quadruple track between Shields Road (Glasgow) and Paisley Gilmour Street. This would aid an expansion of both passenger and freight movement on an overloaded route which is likely to be associated with the reopening of the former rail links from Strathbungo and Shields Road across the St Enoch Bridge providing a new link for both passenger and freight movement across Glasgow from the south and west to the north and east.
The Committee would recommend these schemes for inclusion in Scottish Executive/SRA plans for trackenhancement during the next five years.
Response:
Good progress is being made on the Stirling-Alloa-Kincardine Project. The Private Bill seeking permission from the Parliament to construct the railway is expected to be lodged shortly. The latest estimate for opening is winter 2005/06.
Increasing capacity from Paisley to Glasgow and links from Shields Road to north and east of Glasgow will be considered in the context of the RLGEA and SSRS.
Paragraph 135-136:
Five other freight issues were also raised in evidence. These were:
· The impact of the recent 50% cut in Rail Freight Track Access charges on ensuring that the British target of 80% rail freight growth by 2010 is met (EWS argued that, though welcome, these cuts need to be associated with programmes to improve capacity and clearances for Freight);
· The need for new Scottish targets for shifts from lorries to rail or water-borne freight (the present target - well on the way to being met - does not extend beyond March 2003);
· The need to speed up Scottish Executive decisions on Rail Freight Facility Grant applications;
· The need for a specific programme for improving the overall loading gauge (notably in relation to the height required to handle the increasing number of high containers becoming the norm on oceanic routes). No routes north of Glasgow presently meet the height clearances already established to the south yet these standards still fall below the European norm, while EWS also sees a case for increasing clearances south from Glasgow.
· The need to aid Scottish rail freight by completing 9'6" container clearances on remaining sections of the routes to Southampton and Felixstowe not yet cleared (in addition to the Channel Tunnel).
The Committee did not receive sufficient evidence to make precise recommendations on these issues, but given the importance of rail freight development and the resolution of passenger conflicts would request an integrated response from the Executive and SRA in view of the importance of rail freight development and the resolution of passenger conflicts.
Response:
Freight facility grants (FFG) targets are set for the years beyond March 2003. These are that FFG awards will have been made by March 2004 which will remove 23 million lorry miles per annum off Scottish roads with the target being increased to a total of 25 million lorry miles by March 2006. We are also aware of the need to process FFG applications as quickly as possible whilst at the same time ensuring that an appropriate amount of rigour is applied in assessing the projects to ensure public accountability needs are met. There is no current backlog. Regular meetings are held with the SRA about freight grant issues
Light Rail
Paragraph 140:
The Committee would therefore urge the Scottish Executive to consider and report on light rail and shared running as part of ongoing work on the ScotRail replacement franchise and on the delivery of transport infrastructure enhancement and operational efficiency.
Response:
The Executive is willing to consider specific light rail schemes, including any that involve shared running, where these tackle identified transport needs. So far, however, no evidence has been presented to the Executive to suggest that it makes financial or operational sense to convert any part of the existing heavy rail network to light rail although this option has been considered by SPT in respect of some suburban services.
Integration between Transport Modes
Paragraph 143:
It is recommended that the Executive should make changes in the conditions applying within any transport contracts or franchises involving public funding to promote service and fares integration and that Local Authorities should take similar action in relevant contracts and planning permissions. This action should be part of the suggested new concordat between the Executive and the SRA.
Response:
Noted