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We are in no doubt that light rail has the potential to be an important part of the transport mix, although it will not meet all transport needs. It needs to be part of an integrated transport system, and its development needs to involve not just highway authorities, but local planning authorities, if it is to be fully effective. Promoters bringing forward new schemes should take this into account, and we welcome the Department's view that light rail should be considered as part of an integrated system.
We believe experience demonstrates it is no longer possible to transfer revenue risk to the private sector without increasing costs dramatically, whether or not those risks materialise. The Department's openness to new forms of financing is welcome, but it should be a source of expertise and guidance to promoters, rather than requiring them to present proposals with little or no indication of whether or not they meet the Department's requirements.
Currently, "about the equivalent of 10 full-time posts" in the Department work on what are new and fairly new major projects in the light rail division. If the Department is to support promoters trying to introduce light rail schemes, this may need to be increased, but the key is not the number in post, but the expertise and responsiveness of those concerned.
The Department has failed to give a strategic lead in the development of light rail. We believe the following actions are needed to ensure that the Department can give such a lead.
- The Department must build up its own expertise on light rail, and share that expertise with promoters.
- The Department must engage wholeheartedly with bodies such as UKTram which are trying to drive down costs by increasing standardisation and sharing experience.
- The Department must give clear guidance about the circumstances in which it is prepared to consider light rail schemes. In considering schemes, it should look at the extent to which highway and planning authorities are co-operating effectively, the way in which light rail is integrated with other transport modes, and the extent to which public transport will provide a comprehensive network.
- The Department must accept that the time it takes to consider schemes, and the fact that even once approval in principle is given funding remains uncertain, itself adds considerably to project costs. It must adhere to its new four month limit for considering schemes. It must be stable in its funding decisions, although it would be perfectly reasonable for the Department to refuse to fund increases in costs beyond those initially approved.
- The Department must urgently reconsider the contribution utilities make to the diversion of their services. Their contribution should be high enough to deter them from demanding unnecessary works. In particular, promoters should not be expected to bear the bulk of the cost of locating infrastructure belonging to utility companies.
- The Department must give local authorities more powers over their bus services. The reduction of the time required before quality bus contracts can be introduced, and the transfer of Bus Service Operators' Grant to local authorities using quality contracts, are welcome signs, but we consider more may be needed.
In the longer term, central Government may wish to consider whether local authorities should have greater powers to raise their own resources to fund local transport infrastructure. We suggest this to any future Transport Committee as a fruitful topic of inquiry.
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