Select Committee on Transport Minutes of Evidence


Examination of Witnesses (Questions 80-99)

MR IAIN COUCHER, MR PAUL PLUMMER AND MR GRAHAM SMITH

3 NOVEMBER 2004

  Q80 Clive Efford: The use of grinders, these things called Spenos, on trains makes it very difficult to identify cracked rails. You have to use ultrasound now, where one of these machines has been on the track?

  Mr Coucher: No, it is the opposite. We do ultrasonic inspections either with train mounted systems or manually where it is simply cheaper. We now systematically use train grinding to take out imperfections in the rail which can be detected by ultrasonics. One mechanism by which you fix defects in the rail detected by ultrasonics is to grind them out using the grinder. Grinding had been neglected for some time and we have been investing heavily over the last two or three years to restore a rail head management system.

  Q81 Clive Efford: Anecdotal information I have had is from rail engineers who say visual inspections are now very difficult because of the grinders, because they grind the surface smooth and you cannot see the actual cracking.

  Mr Coucher: The grinding takes cracks out of the rail. We supplement our inspection regimes with ultrasonic inspections which we do either with a person walking along the track with a manual device or train mounted systems. We do not rely on the human eye to detect cracks in the rails any more. We do, however, have a precautionary check which looks at other things on and around the railway, but to rely on the human eye to identify cracks in the rails is very, very inefficient or inappropriate. The technology we have got now looks through the rail, the railhead of the rail, below the rail, to identify cracks which could result in breakages rather than relying on the human eye to detect.

  Q82 Clive Efford: It is heavy usage, not just deterioration over age that actually causes cracking?

  Mr Coucher: It is heavy usage.

  Q83 Clive Efford: The cracking is caused by more usage on busier lines?

  Mr Coucher: Cracking occurs more on more heavily used train tracks and is also a function of the type of trains that you put down it.

  Q84 Clive Efford: Is there a specific type of rolling stock that is likely to cause cracking?

  Mr Coucher: What leads to poor railhead conditions, and cracking is not the only issue here, is really to do with the stiffness of the bogeys that the train sits on. It is not the train type; it is the way in which the bogeys are set up. We know what trains run over it, we model all of those, and our inspection regimes, our grinding frequencies, are dictated by the types of trains that run over it rather than simply relying on anecdotes and gut feeling.

  Clive Efford: Thank you.

  Q85 Ian Lucas: Who is responsible for station buildings?

  Mr Coucher: Let me try and unpick this one. Network Rail owns all 2,504 stations on the network.

  Q86 Chairman: 2,504?

  Mr Coucher: At the last count. All but 17 of these are leased. Whilst we own them and we have the renewal responsibility, all but 17 of these are leased to train operating companies that manage the stations themselves. The 17 that we do manage ourselves are the major mainline stations like King's Cross, Paddington, Leeds, Edinburgh and places like that. The responsibility for maintaining and operating the stations lies with the individual train operating company but that is under a leasehold arrangement that we administer and they have got certain restrictions over what they can use it for and what they can do.

  Q87 Ian Lucas: What about vacant buildings? If I wanted to use a building at a station that was not used by anyone else, perhaps it is semi-derelict, who would I approach?

  Mr Coucher: The starting point should be Network Rail: "Can we talk to Network Rail about the use of a vacant building?" If it is vacant it means that it is not being leased to the train operating company. There are one or two parts of the network where the property and the land it sits on is either derelict or disused and actually resides with the SRA and was non-operational, which was not transferred to  Railtrack at privatisation. That is owned and looked after by a company called British Rail Properties Residual Limited, which is a wholly owned SRA subsidiary. The starting point is always come and talk to Network Rail because we will know the identity of those people.

  Q88 Ian Lucas: How does Spacia fit into this?

  Mr Coucher: Spacia is a wholly owned Network Rail company which generates income for investment on the railways from the redeployment of spaces underneath railway arches. They generate around about £80 million a year in income to Network Rail which we then use as part of investment in the rest of the railways.

  Q89 Ian Lucas: I have come across situations myself in my constituency, and also we met a group at Frodsham in Cheshire when we were doing the Rural Railway Inquiry, where a number of organisations have had real problems trying to access buildings for community use and have encountered large delays in dealing with Network Rail. Is that a problem?

  Mr Coucher: It has been a problem.

  Q90 Ian Lucas: Why has the problem occurred?

  Mr Coucher: There are two or three problems really. First of all, frequently we do get approaches on buildings that we do not own and we then have to route them back to the relevant SRA part of British Rail Residual Properties. Secondly, the disused properties and land do form an important part of our income stream. We will always try and either generate commercial income from the reuse of these buildings or dispose of them to generate income that we need. Quite often we get people approaching us suggesting they would like to have it at peppercorn rent and we are saying "No, we want to get a commercial rent for that" and that starts to get more difficult. Thirdly, I think that as an organisation we have been particularly difficult to engage with and we are going to establish a single point of contact for anybody who wants to have the possibility of using surplus property and/or space inside existing property for exactly that reason, that we have been difficult in the past. It is a problem which we would apologise for.

  Q91 Ian Lucas: You mentioned that you would always try to maximise the income from any property. Do you have any other criteria by which you might allow a building to be used such as social, environmental criteria, or do you have a duty only to operate on the basis of a profit?

  Mr Coucher: We got a regulatory settlement this year and it was a lot of money, I appreciate that, but in the settlement the Regulator expects us to generate probably two to three billion pounds over the control period in income from third party sources and, therefore, we look to make sure that our shortfall investment over our grants and fares income comes from these sources. Our primary driver is to get a commercial return on property like that. Having said that, if we cannot then we do look for alternative uses and we do work with various partners, Community Rail Partnerships, to find alternative ways of doing that. It is good for us to use these buildings in that regard. They do not generate any income for us but it is good to have them occupied and looked after.

  Q92 Ian Lucas: Do you ever consider the objective of allowing another organisation to do up a derelict building on the railway line? That may not bring you any income but it allows the buildings to be looked after.

  Mr Coucher: Yes. There are quite a few instances where we have done that and we do encourage it. The argument always comes down to two or three things, I guess. Firstly, there is our belief that we could dispose of the land and the building itself for income, and people often say we should keep it and allow them to use it for other reasons and there is a disagreement about that. Secondly, if we need to retain the piece of land for operational railway uses in the future there tends to be an argument about the length of lease that we give and in turn that affects the investment criteria that people may use for a disused building. Thirdly is the way in which funds are generated. Quite frequently there is an expectation that Network Rail contributes a significant proportion of the redevelopment of that individual location for which we, of course, have no funds.

  Q93 Ian Lucas: Will the Railway and Community Trust play a role in dealing with these buildings?

  Mr Coucher: Yes. The Railway and Community Trust that they have been talking about is a way in which they can attract investment funds from outside the railway to generate and regenerate buildings of that nature. If we can find those instances we will work with the relevant authorities to free up those buildings under long leasehold or peppercorn rent to enable them to use that, subject to us having the ability to recover it with sufficient notice for any operational needs we may need in the future.

  Q94 Chairman: I want to bring you back to safety before I bring Miss McIntosh in. Are you going to allow the continued use of foot crossings rather than insisting on footbridges?

  Mr Coucher: At the moment we do continue to allow some foot crossings. The possibility of introducing new ones is more problematic for us because the health legislation restricts us from doing that. The continued use of footpaths across the railways is always subject to a risk assessment which is a function of the frequency of trains, the speed of approach and how much time people can see to get across.

  Q95 Chairman: Are you going to look at the standards on the way that rural railways are run or are you going to maintain your existing stance?

  Mr Coucher: At this point the standards for allowing continued use of footpaths is something that is driven by standards outside of our control, they are health and safety standards.

  Q96 Chairman: You say that Network Rail is going to be reorganised, with operations managed through routes more closely allied to the map of train operators. Is that going to encourage smaller infrastructure works?

  Mr Coucher: That in itself will not contribute to undertaking smaller infrastructure works. What we have now got is a national organisation that we deliver renewals on and we are looking to find ways in which we can do smaller renewals locally with the existing workforce that we have inherited since we took that back in-house.

  Q97 Chairman: So could you look at a different system of track access charges on Community rail routes?

  Mr Plummer: The review of the structure of costs and charges that is just starting with ORR is looking particularly at the structure of costs and whether they are different on the rural railways in terms of the incremental effect of running a train on a rural railway compared to elsewhere, and then it will move on to whether that should be reflected in different charges for the use of that railway.

  Q98 Chairman: You were here listening to the evidence about Jonko­ping and the way that they do their calculations. Do you think that has something to be said for it?

  Mr Plummer: I think I will need to look into it more, to be honest.

  Chairman: Yes. Miss McIntosh?

  Miss McIntosh: Thank you, Chairman. Presumably if we are interrupted by the vote we will continue?

  Chairman: Yes, but I do not want to keep our witnesses here very long, we do have other witnesses. If we can keep the questions short, thank you.

  Q99 Miss McIntosh: Mr Coucher, could I ask you what the level of investment was in renewals and maintenance of rural railways four years ago as compared with today? If you are not able to give us the figures today, could you write to us?

  Mr Coucher: Yes. If I could adopt the latter option, please, that would be great.


 
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