Explanatory Memorandum from the Department
of the Environment, Transport and the Regions (EST 98A)
PART II—COMMENTARY ON THE SUPPLY ESTIMATES
CLASS VI, VOTE 6: TRANSPORT
INDUSTRIES
More details can be found in the Annual Report
1998: Chapter 9, 12, 13, 14, 15 and 16 and Tables A6, A10, A11,
A14 and A15.
| Vote total
|
|
| |
|
| Final net provision 1996-97 | 1,1745,539
|
| Provision sought 1998-99 | 1,198,372
|
| Change | -547,167 |
| Change (Per cent) | -31 Per cent
|
| |
| Final net provision 1997-98 | 1,253,533
|
| Provision sought 1998-99 | 1,198,372
|
| Change | -55,161 |
| Change(Per cent) | -4 Per cent
|
|
This Vote replaces the former Class V, Vote 3 (Transport
Industries) and parts of Class V, Vote 2, (Department of Transport:
administration and transport services).
The provision in this Vote covers the Department of the Environment,
Transport and the Regions' support to transport nationalised industries;
grants to Railtrack; British Rail; DoA Ltd; MRPS grant; payments
in respect of expenditure relating to international railways and
the Channel Tunnel Rail Link; expenditure connected with the privatisation
of British Rail businesses and Railtrack; other consultancies;
capital expenditure by transport industries funded by EC grants;
railway industry and National Freight Company pension funds; National
Freight Company travel concessions; rebate of fuel duty to bus
operators; ports and shipping services; Royal Travel; civil aviation
services; international aviation services; transport security;
freight grants; and expenditure associated with the non rail privatisation
programme.
In 1998-99 this Vote took over some provision for some transport
services such as ports and shipping services; civil aviation services;
international aviation services; transport security; freight grants;
and royal travel from the former Class V, Vote 2.
Section E—Other rail consultancies
|
| £000 |
|
| Final net provision 1996-97 | 7,036
|
| Provision sought 1998-99 | 5,650
|
| Change | -1,386 |
| Change (Per cent) | -20 Per cent
|
| |
| Final net provision 1997-98 | 1,109
|
| Provision sought 1998-99 | 5,650
|
| Change | +4,541 |
| Change (Per cent) | +409 Per cent
|
|
Annual Report 1998—Figure 2a
The reduction in provision between 1996-97 and 1998-99 and
the increase in provision between 1997-98 and 1998-99 result from
two causes. First the bulk of expenditure on the Channel Tunnel
Rail Link (CTRL) related consultancies was transferred to a new
Section P during 1997-98. Second, there was an increase in provision
in 1998-99 in anticipation of consultancies required in connection
with the London Transport Public Private Partnerships (PPP).
| Section F—CTRL competition
|
|
| £000 |
|
| Final net provision 1996-97 | 12,900
|
| Provision sought 1998-99 | 33,487
|
| Change | +20,587 |
| Change (Per cent) | +160 Per cent
|
| |
| Final net provision 1997-98 | 3,500
|
| Provision sought 1998-99 | 33,487
|
| Change | +29,987 |
| Change (Per cent) | +857 Per cent
|
|
Annual Report 1998—Chapter 12, paragraphs 12.23-12.26;
figure 12a
Channel Tunnel Rail Link expenditure is forecast to increase
in 1998-99 when the main construction is due to begin. The expenditure
is limited to works and undertakings which the Government is contractually
obliged to provide, including work by London Underground at St
Pancras.
Annual Report 1998—Chapter 12, paragraph 12.11
The main proceeds (£1,822 million spread over the two
years 1995-96 and 1996-97) from the sale of rolling stock leasing
companies (ROSCOs) as Government-owned companies were categorised
as excess receipts and are shown as a nil figure for 1996-97.
Deferred proceeds were from 1997-98 treated as appropriations
in aid, with Treasury's consent. The timing of deferred receipts
from the sales of ROSCOs is such that receipts are lower in 1998-99
than in 1997-98, and would have been lower still had payment of
a tranche not slipped from 1997-98.
| Section K—Ports and Shipping services
|
|
| £000 |
|
| Final net provision 1996-97 | -18
|
| Provision sought 1998-99 | 1,052
|
| Change | +1,070 |
| Change (Per cent) | —
|
| |
| Final net provision 1997-98 | 3,815
|
| Provision sought 1998-99 | 1,052
|
| Change | -2,763 |
| Change (Per cent) | -72 Per cent
|
|
Annual Report 1998—Chapter 15, paragraphs 15.23-15.26;
figure 15a
The receipts were increased during 1997-98 by £4.9 million
to reflect higher than expected receipts from the sale of Port
of London Properties; the latter receipts are usually surrendered
to the Consolidated Fund in full. The Port of London Properties
receipts in excess of CFER provision were scored as ports and
shipping appropriations-in-aid with Treasury's agreement. The
provision in 1998-99 is higher than in 1997-98 to cover the International
Maritime Organisation's major maintenance projects, and the costs
of the MV Derbyshire and Sea Empress Formal Inquiries.
| Section L—Civil Aviation services
|
|
| £000 |
|
| Final net provision 1996-97 | -3,880
|
| Provision sought 1998-99 | 789
|
| Change | 4,669 |
| Change (Per cent) | —
|
| |
| Final net provision 1997-98 | -3,757
|
| Provision sought 1998-99 | 789
|
| Change | 4,546 |
| Change (Per cent) | —
|
|
Annual Report 1998—Chapter 14, paragraphs 14.13-14.15
and 14.20-14.32; figure 14a
Changes in the required provision from one year to another
are mainly due to changes in the net contribution from expenditure
and receipts on EUROCONTROL. The estimated reduction in 1998-99
com pared with both 1996-97 and 1997-98 is caused by the
increase in the value of sterling relative to the ECU and an increase
of members.
| Section N—Transport security
|
|
| £000 |
|
| Final net provision 1996-97 | 1,950
|
| Provision sought 1998-99 | 2,205
|
| Change | +255 |
| Change (Per cent) | +13 Per cent
|
| |
| Final net provision 1997-98 | 1,855
|
| Provision sought 1998-99 | 2,205
|
| Change | +350 |
| Change (Per cent) | +19 Per cent
|
|
Annual Report 1998—Chapter 16, paragraphs 16.8-16.9;
figure 16a
The increase from 1996-97 and 1997-98 to 1998-99 results
from the move of Royal train security funding to this Section
of the Vote.
| Section O—Freight grants
|
|
| £000 |
|
| Final net provision 1996-97 | 12,421
|
| Provision sought 1998-99 | 39,652
|
| Change | +27,231 |
| Change (Per cent) | +219 Per cent
|
| |
| Final net provision 1997-98 | 31,161
|
| Provision sought 1998-99 | 39,652
|
| Change | +8,491 |
| Change (Per cent) | +27 Per cent
|
|
Annual Report 1998—Chapter 12, paragraph 12.19-12.20;
figure 12a
The increases have been made to encourage more freight onto
rail. Action has been taken to boost the take-up of freight grants.
Annual Report 1998—Chapter 9, paragraphs 9.38-9.39; figure
9a
Before 1997-98 the grant to support PTE rail passenger services
was funded from within the local authority Revenue Support Grant.
Annual Report 1998—Chapter 12, paragraph 12,13; figure
12a
This consists of four quarterly payments in repayment of
PTE capital debt. Responsibility for making the payments transferred
from Railtrack to DoA Ltd when Railtrack was privatised in May
1996. In 1996-97 there were only three quarterly payments made
by DoA Ltd instead of four (since one payment was paid by Railtrack
before privatisation). In 1998-99 the provision is for four payments.
| Section S—London Transport
|
|
| £000 |
|
| Final net provision 1996-97 | 966,000
|
| Provision sought 1998-99 | 592,000
|
| Change | -374,000 |
| Change (Per cent) | -39 Per cent
|
| |
| Final provision 1997-98 | 652,000
|
| Provision sought 1998-99 | 592,000
|
| Change | -60,000 |
| Change (Per cent) | -9 Per cent
|
|
Annual Report 1998—Chapter 13
The large reduction in provision between 1996-97 and 1998-99
reflects the previous Government's plans. The figure for 1998-99
includes additional grant of £120 million which is being
provided to LT as part of the Government's package for a PPP for
the Underground.
| Section T—British Rail grant
|
|
| £000 |
|
| Final net provision 1997-98 | 40,000
|
| Provision sought 1998-99 | 60,000
|
| Change | +20,000 |
| Change (Per cent) | +50 Per cent
|
|
Annual Report 1998—Chapter 12, paragraphs 12.7-12.10;
figure 12a
This is a new grant to fund the residual activities of BR.
It was introduced in 1997-98 following the cessation of BR's responsibilities
for railways operations. The provision is higher in 1998-99 due
to expected low income from its diminishing programme of property
disposal.
| Section U—Non rail privatisation programme
|
|
| £000 |
|
| Final net provision 1996-97 | 1,295
|
| Provision sought 1998-99 | 160
|
| Change | -1,135 |
| Change (Per cent) | -88 Per cent
|
| |
| Final net provision 1997-98 | 400
|
| Provision sought 1998-99 | 160
|
| Change | -240 |
| Change (Per cent) | -60 Per cent
|
|
Falling provision on this Section over the years 1996-97,
1997-98 and 1998-99 mainly reflects the declining activity and
requirement for consultancies on the privatisation of the Trust
Ports.
|
