Memorandum by the Department for Transport
(RR 33)
RURAL RAILWAYS
INTRODUCTION
1. The Government believes that good transport
connections are one of the essential driving forces for any country's
development. They are central to achieving a better quality of
life, healthy economic growth and sustainable and thriving communities,
be they in urban or rural areas. In rural areas, as well as elsewhere
we want to see an integrated approach to the development of regional
transport infrastructures, so that the provision of transport
complements the economic, social and environmental priorities
embedded in planning guidance, in the 10 Year Plan for transport
and in the Rural White Paper. Meeting rural accessibility needs
is essential if we are to be able to build and sustain thriving
rural communities. Rail transport plays its part in the development
and sustainability of local economies and helps to boost the attraction
of seaside and coastal towns for tourism and leisure purposes.
2. Rural railways provide often isolated
rural communities with a highly valued vital link to urban areas
and amenities. These services can, however, often be very lightly
used and offer limited income and hence require high levels of
public subsidy. This general inability to prove commercially viable
has long been a matter of concern for rural rail stakeholders,
the industry in general and the Strategic Rail Authority (SRA).
It is therefore appropriate to consider how best we can address
these concerns by developing a suitable approach for dealing with
rural rail lines and making them more sustainable.
3. The SRA's proposals for a Community Rail
Development Strategy aim to do just this by putting forward radical
new plans for dealing with lightly used rural rail lines, by adapting
them to more closely meet the needs of the local community. The
aim is not only to make them more economically sustainable but
also to develop a fresh approach to the way these lines are managed,
marketed and supported. The SRA published a consultation paper
about its proposed approach on 26 February. The consultation period
ended on 28 May. The SRA is now collating the responses received
and will draft a strategy document for consideration and approval
by the Secretary of State.
4. We look forward to hearing the views
of the general public and local stakeholders on the SRA's proposals
and to receiving the SRA's draft strategy. We also welcome the
Committee's inquiry in this important area and look forward to
receiving their input as well.
RURAL RAIL
IN THE
CONTEXT OF
GOVERNMENT POLICY
5. The Rural White Paper published in 2000
gave a commitment that all Government departments and agencies
would in future "rural proof" policy development and
implementation, to ensure the rural dimension was taken into account.
Last year the SRA announced a new approach to the long term planning
of the railway network. The Authority's new document "The
Railway Planning Framework: Regional Planning Assessments (RPAs)"
set out the Authority's proposals for a series of guides to assist
the development of the railway network in each English region
and Scotland and Wales. The aim was that the RPAs would provide
a framework to be followed when planning for rail services in
a transport area. In preparing them the SRA is actively engaging
with regional and local stakeholders, in order to be better informed
when preparing a clear and comprehensive strategy for assessing
the needs of an area and targeting resources to meet them. Along
with this the SRA also set up a team of regional planning officers
for every UK region, thereby providing regional and local stakeholders
with a single point of contact to develop their strategic rail
objectives.
6. The community rail proposals build upon
this and aim to ensure that rural rail lines are established and
run on a sustainable basis. They therefore fit not only within
overall Government and SRA policy directions, but also our general
approach to the provision of transport in rural areas.
7. As the Committee is aware, our focus
for the railway is on bringing performance back up to acceptable
standards and restoring stability and confidence in the industry.
Whilst difficult decisions about what is affordable and deliverable
are having to be made, rail investment continues to be set at
a higher level than for any comparable period over the last 100
years. Spending on our rail network has been rising from £2.1
billion in 2001-02 and will reach £4.3 billion in 2005-06.
Together with this investment it is essential that we secure a
more cost-effective industry whilst making the network as efficient
as possible and getting the most out of individual routes. Overall,
we aim to improve the day to day management of the industry and
structure more realistic timetables, whilst working with the industry
to drive down costs and establish what can realistically be delivered,
not only within the life-span of the 10 Year Plan but also in
the longer term.
8. For this reason the Secretary of State
announced on 19 January 2004 that the Department would commence
a review to look at what structural and organisational changes
may be needed so that the railways can operate more effectively
for its customers, with clear lines of accountability and responsibility.
We intend to publish proposals in the summer for a new structure
and organisation for Britain's railways, and we will also set
out our spending plans for the railways through to 2008 as part
of the 2004 Spending Review announcement.
9. The willingness to look for new and better
ways of doing things must be placed alongside sustained investment
as an essential foundation of delivering a more effective railway
for passengers, industry and the country as a whole. Rail plays
an essential role in the economy of Britain and the lives of its
people. Whilst difficult decisions about what is affordable and
deliverable are having to be made, it is also sensible to look
at new ways of delivering better for passengers. It is about putting
the passenger first. The proposals from the SRA fully reflect
other SRA Strategies and the current funding constraints. Any
funding required would be subject to the same rigorous appraisal
criteria and prioritisation as other initiatives in the railway
industry.
THE SRA'S
STRATEGY
10. The SRA's proposals aim to develop a
more appropriate strategy for running presently uneconomic and
heavily subsidised rural rail routes as designated community rail
lines where a number of initiatives will be taken forward to make
the lines more sustainable. Different solutions may be appropriate
for different lines. The approaches being considered could include:
— increasing co-operation with local
authorities and tourist boards to market the services better and
to vary them to more appropriately meet seasonal demand;
— increasing co-operation and integration
with local bus companies to integrate their services and timetables
with rail;
— introducing new fares and ticketing
strategies for local residents, including "add-ons"
for bus services, whereby through ticketing would allow for both
rail and bus use to be covered;
— reducing costs through a re-specification
of routes so as to avoid more onerous interoperability requirements,
health and safety requirements and consequential insurance costs,
and;
— a relatively small number of routes
could also benefit from being taken out of the conventional network.
For example local management vertically integrated micro-franchises
could be allowed for some lines, along with taking them out of
the performance regime, and making the timetables suit local demand.
11. The SRA's consultation paper lists about
60 routes for consideration under the community rail scheme. Five
initial pilot schemes have been proposed in order to test the
range of initiatives that have been proposed above. They would
be introduced on the Esk Valley line, the Island line, the Looe
Valley line, the St Ives branch and the Watford Junction to St
Albans branch.
12. The overarching aims of the SRA's proposals
are jointly to reduce the level of subsidy the routes require
and to adapt the services on them to more closely meet the needs
of the local community. The benefits they are looking to deliver
are therefore not simply financial, but also social, including
improved accessibility and a better service that is specifically
aimed at delivering improvements tailored to the needs of the
local community.
13. An essential element of this is the
adoption of a partnership approach to addressing local rail transport
needs. Community Rail Partnerships, which follow this approach,
have been shown to work successfully. Such rail partnerships bring
together train operators, Network Rail, local authorities, passenger
groups and the wider community to promote and develop local railways,
through a wide range of initiatives which include working with
tourism agencies, to not only consistently increase passenger
use, but also increase the income from the lines concerned. Many
rail lines with such partnerships have recorded large increases
in passenger numbers, such as the Bittern Line Partnership (Norwich-Sheringham).
It is the most successful example of a community rail partnership
and has seen a 140% increase in demand over the last seven years.
Whilst the success of the Bittern line is exceptional, it is by
no means unique. Most routes on which Community Rail Partnerships
operate have seen significant increases in demand. The SRA and
the Department are keen to see such improvements to services replicated
elsewhere, where those services represent value for money and
are affordable.
14. We support the partnership approach
to addressing transport problems. Maintaining regular and ongoing
dialogue with the industry, stakeholders and user groups and the
general public is the only way to ensure that we can tackle the
key transport problems that we face. However, it is essential
to ensure that proposals are properly appraised, are financially
viable and will deliver improvements for the local community.
A balance must be struck between competing objectives, because
with finite resources, not all schemes and aspirations can be
delivered.
15. The Government recognises the potential
value to be derived from giving regional bodies a greater role,
involvement in, and responsibility for delivering local rail improvements
in their areas. A joined-up approach is needed with everyone working
together. Effective partnerships are essential if we are to develop
the strong strategic transport links that can successfully help
to boost local economies and deliver the positive improvements
the public and local industries need.
16. Another desired tangible benefit is
better integration of rail and bus services. The SRA's proposals
aim to enhance the integration of the transport modes, improve
interchange facilities and seek to promote joint initiatives between
train and bus operators, working in partnership with the local
community, to deliver services that are properly and more appropriately
geared to the needs of that community. A number of examples already
exist where the provision of bus services in rural areas act as
feeder services for rail. For example the Penistone Line Community
Rail Partnership (Huddersfield-Sheffield) runs a community bus
service linking Holmfirth with the railway. Other examples occur
in towns in Essex and in Brighton and Portsmouth, where through
ticketing arrangements allow for both rail and bus use to be covered.
This shows what can be achieved through co-operation and partnership
working at the local level. The SRA's proposals seek to build
upon and develop further opportunities like these, where passengers
will be able to enjoy as seamless a journey as possible.
CONCLUSION
17. These proposals are still at the formative
stage and the final strategy has yet to be drafted. Further work
is necessary to determine the actual costs of these lines, to
define the appropriate standards for their specification and to
examine how the developments planned could best be delivered contractually.
18. We look forward to hearing the views
of respondents to the consultation and the further development
of this initiative. It is important that we recognise the potential
contribution that more flexible and demand-responsive transport
solutions can make to meeting the accessibility needs of the rural
communities. There is no single model that will meet all the needs
of rural areas, but these proposals set out a number of ways in
which a more co-ordinated approach to integrating local rail services—which
are more appropriately tailored to addressing local circumstances—can
deliver the right solution for those local communities.
June 2004
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