Supplementary memorandum by the Strategic
Rail Authority (FOR 97A)
LEADERSHIP AND REGULATION IN THE RAIL INDUSTRY
Thank you for the letter of 17 July to the Chairman
who has asked me to respond to the Committee's requests for supplementary
1. The number of passengers travelling by
train from London to the major British conurbations and what proportion
of the total market rail has in each case.
See Annex 1 for the number of passenger journeys
made between major cities and London for each year since 1996.
The cities are defined by the major stations in the area eg Bristol
includes both Temple Meads and Parkway. Information on mode share
by route is not held. However, the table below provides the overall
mode share percentages, in passenger kilometres, for 2001. For
longer distance travel in general, rail's market share is higherin
the 10%-20% range. For flows to and from London the rail market
share is significantly higher still, but there is no reliable
or recent data to quantify the position.
|Cars Vans and Taxis||85%
Source: DFT"Transport Statistics Great Britain
2. When will "Pendolino" trains be operational
on the London-Liverpool route?
The planned date is 20 October 2003.
3. What is the current position in reject of peak-time
services and performance on the Connex South Eastern franchise?
The latest figures published by the SRA show that for
the quarter January-March 2003 71.4% of the CSE peak services
arrived on time. Data for the quarter April-June will be published
18-19 September: this indicates that performance has improved
4. The procurement and payment arrangements between the
SPA and First Class Partnerships (FCP).
The SRA entered into an agreement with FCP on 1 July
2003. It reflects standard public sector terms and conditions
based on Treasury Guidelines. FCP is paid in accordance with the
terms of the agreement relating to the supply of services, generally
within 30 days of the invoice date.
5. When will the Freight Facilities Grant be opened to
We hope to re-open the Grant Schemes in Autumn 2003 for
spend in 2004-05. This is subject to final confirmation of our
6. Will the Rail Passenger Partnership (RPP) and Rail
Performance Fund (RPF) schemes re-open, if so when?
The re-opening of the schemes to new applications is
dependent on our budget settlement for 2004-05.
7. Estimated subsidy payments to franchisees for 2003-04.
Does the SPA anticipate any alteration to these projections in
the current financial year, if so, why?
There is a general problem of cost escalation in the
rail industry. We have drawn attention to it in our Strategic
Plan, published in January, and it is at the forefront of our
making the case for rail to the Spending Review 2004. Franchise
costs are at present following and to some extent contributing
to this trend. The most immediate causes of increases in subsidies
for 2003-04 are notably the continued impact of the 5% real increase
on fixed access charges (consequent on the Regulators Review of
October 2000 which provided for an overall decrease in charges
followed by a stepped increase to charges year on year over the
control period, April 2001-March 2006); the continued provision
of additional subsidy to Virgin Rail Group following Railtrack's
failure to deliver the PUG 2 agreement; and higher costs associated
with new rolling stock replacing Mark I stock.
8. A breakdown of the total estimated cost off £9.9
billion for the WCML project. Has there been any change to that
figure? Where will the "material reduction" (WCML Strategy,
page 9) be sought, and what are your current estimates for the
amounts likely to be saved?
We continue to seek efficiencies which might be made
without compromising the outcome to be provided by modernisation
of the route. The current estimated costs remain at £9.9
billion. A breakdown of the current estimated cost is provided
in the table below. The Committee will be advised of any revision
to the estimated costs.
|Expenditure to 31.03.03||3.1
|Subsequent site-specific renewals and enhancement schemes
9. Update on the East London Line (ELL) SPV.
The ELL project will extend existing rail services North
to Highbury & Islington and South to West Croydon/Crystal
Palace and Clapham Junction. The project will be delivered by
a Special Purpose Vehicle (SPV) using the Design, Build, Finance
and Transfer model. The Department of Transport endorsed the core
proposition on 11 July 2003, on the basis that the transport and
regeneration benefits of the project justify the financial and
Parliamentary and Public Communications
15 September 2003