Written evidence from Network Rail
EXECUTIVE SUMMARY
— Rail is crucial in supporting sustainable
economic development, particularly in Britain's city regions.
— Demand from passengers and freight is continuing to grow
and additional capacity is needed. Local Enterprise Partnerships
(LEPs) must, therefore, play their full part in shaping and financing
the future development of the network in their areas to ensure
it supports economic growth and prosperity in their areas. —
Network Rail has a good relationship with Regional Development
Agencies (RDAs) and this should be carried through into LEPs.
— A duty should be placed on Local Planning
Authorities (LPAs) and LEPs in the forthcoming Localism and Decentralisation
Bill to demonstrate that they have had regard to published rail
plans in assessing and prioritising local needs.
— LEPs should be able to pool planning
obligation revenue (particularly from any successor to the Community
Infrastructure Levy (CIL)) to support the enhancement of rail
infrastructure in their areas.
— The government should also consider innovative
ways to enable and incentivise LEPs to raise money for key infrastructure
enhancements at a sub national level such as local government
bonds and Accelerated Development Zones.
INTRODUCTION
1. Network Rail owns and operates Britain's
rail infrastructure. It is a "not for dividend" company
whose profits are reinvested in the network.
2. We welcome the opportunity to submit comments
to the committee on Local Enterprise Partnerships (LEPs). We hope
to develop a strong relationship with LEPs and that they will
play a key role in supporting the future development of the railway
to support sustainable economic development in their areas.
3. We note, however, that submissions from
local authorities to the Departments for Business, Innovation
and Skills and Communities and Local Government are due on 6 September
2010, ahead of the publication of a white paper. We will respond
to that consultation in due course.
THE IMPORTANCE
OF RAIL
TO THE
REGIONS
4. Britain's economy relies on rail. It
is essential in underpinning sustainable economic growth at a
local, regional and national level. Every year 1 billion of the
1.3 billion rail journeys made are by commuters or business travellers
and rail transports 100 million tonnes of goods. Faster, more
frequent passenger services and increased freight capacity provide
the private sector with the reliable infrastructure it needs to
invest with confidence in Britain's economy.
5. A key example of a regional project proposed
on the basis of the strength of the economic return it offers
is the Northern Hub. The Northern Hub would make it possible for
3.5 million more passengers to travel by train every year, increasing
labour market flexibility and transforming the city economies
of the north, making them even more attractive locations for private
sector investors.
6. The role of rail in supporting economic
growth and activity in Britain's city regions is, of course, particularly
relevant in the context of LEPs. It has also recently been highlighted
by a report published by the Centre for Cities—"On
Track—Why rail matters".[58]
It looks at how rail projects support business interaction, connect
people to jobs, open up new markets and increase competition and
productivity in the city regions.
7. This is echoed by a report by the Passenger
Transport Executive Group from 2004 that states "... rail
networks are hugely important to our City Regions. In these conurbations
rail is often a major mode; indeed for some types of travel it
will be the dominant mode. As such, rail's success or failure,
growth or decline, has great ramifications".[59]
THE ROLE
OF RDAS
AND LEPS
8. Owing to the importance of rail for the
prosperity of the regions, Network Rail enjoys close and positive
relationships with many of the RDAs and there has been a benefit
to the rail industry in having regional bodies responsible for
the co-ordination of funding and priorities for rail projects.
Whilst it is true that each RDA varied in terms of their commitment
to and funding for infrastructure, it is important to recognise
and retain the elements of their functions that worked well.
9. For example, on large strategic schemes such
as the redevelopment of Birmingham New Street, Advantage West
Midlands (AWM) identified the gateway development as a key priority
for the region on the basis of economic benefits across the West
Midlands. Supported by the local authority and chamber of commerce,
AWM provided a substantial financial contribution (as did the
council) and drove consensus in partnership with Network Rail
on the scheme.
10. For the proposed Northern Hub programme,
the three northern RDAs have been working together as the Northern
Way to build consensus about a range of collective schemes across
the country that no single region or local authority alone could
drive forward. The Northern Way has also helped to promote and
in some cases fund small rail schemes to support economic growth.
11. Finally, the South East England Development
Agency (SEEDA) contributed to the strategic upgrade of freight
lines from Southampton to the West Coast, which recognised the
positive region-wide contribution of modal shift towards both
reducing carbon emissions and road congestion.
12. We hope that the close, constructive
relationship we have with a number of RDAs will be replicated
with LEPs.
13. While Network Rail supports the empowerment
of local authorities and business to develop local priorities
and solutions to meet their needs, it is essential that there
is integration between plans at a local, regional and national
level. We are supportive of there being less prescription to local
authorities as a result of abolishing Regional Spatial Strategies
(RSS) but recognise that LEPs will need to play a role in taking
a broad but co-coordinated approach across local authority and
even local economic regional boundaries.
CONTINUING DEMAND
FOR RAIL
AND THE
RESPONSIBILITIES OF
LEPS
14. Guidance to date suggests that LEPs
will be focused on private sector-led economic development, primarily
targeting regional growth and employment and Network Rail supports
the need to develop these plans across economic regions. However,
rail infrastructure must remain a priority in order to support
such growth.
15. Passenger demand has grown by 40% and
freight by 50% over the last decade and, as figures just published
by ATOC demonstrate, this growth is continuing despite the recent
economic downturn.
16. It is expected that passenger numbers
could double over the next 30 years and even triple in the longer
term. As a result many commuter and long distance routes will
be at capacity at peak times and will not be able to run more
trains on these routes to accommodate further growth. As well
as increasing capacity on the current network it will also be
necessary to grow the network through new lines and the extra
capacity this frees up on the existing network.
17. We hope that LEPs will work closely
with Network Rail and the broader rail industry to both shape
and fund the future development and expansion of the network in
their regions to meet this growing demand.
18. To this end Network Rail would welcome
participation from the LEPs in the six monthly planning conferences
that our network development team currently organise for local
authority planning officers to further encourage joined-up working
and engagement with the railway planning process.
19. Network Rail also publishes a number
of route-specific and network wide documents to plan the future
development of the rail infrastructure based on demand for freight
and passenger capacity—notably the Network Statement, Strategic
Business Plan, Route Utilisation Strategies and Route Plans. Recently,
Network Rail has also published initial proposals for the long
term development of the network in partnership with the rest of
the industry in "Planning Ahead—Control Period 5".[60]
20. Network Rail would greatly value the
input of LEPs into the Control Period 5 (2014-19) planning process.
The next stage of this is the publication of our "Planning
Ahead—The Long Term Planning Framework" document
on 13 August which sets out our view of the longer term opportunities
for rail due to population and economic growth and the impact
of external trends such as increasing road congestion. We would
welcome responses to this.
21. We already carry out extensive consultation
on our planning documents with key stakeholders, which will include
LEPs going forward. These publications should, therefore, provide
councils and other local stakeholders with all information they
need on the rail network in their areas and a full opportunity
to shape it in line with their future priorities.
22. We understand that there might be duties
on Local Planning Authorities (LPA) and organisations such as
Network Rail regarding information sharing to assist the development
of local development frameworks in the forthcoming Localism and
Decentralisation Bill. We believe such duties should also be extended
to LEPs.
23. Both LPAs and LEPs should have a duty
placed on them to demonstrate that they have considered all relevant
published documentation produced by Network Rail and the rest
of the industry, particularly RUSs and Route Plans, in determining
their priorities. Specifically, they should also consider how
their proposals will impact on rail capacity and whether they
need to financially support enhancements to the network.
24. In terms of geographical coverage, RDAs
have gone some way to ensuring there is a co-coordinating body
covering every area in the country, providing clear accountability
for decision-making and alignment between national, regional and
local priorities. We believe there is a high probability that
geographical gaps will exist across the country where no LEP exists
to provide this co-ordination role and this has the potential
to add unnecessary complexity for cross-boundary infrastructure
projects. Where transport projects cross local authority boundaries
the LEPs need to have power to drive forward strategic priorities
beyond the localised requirements of an area.
25. There are inherent tensions between
the interests of the private sector and local authorities with
elected members. Further, there are natural tensions within regions
across local authority boundaries about benefits to each locality.
In striving to achieve a re-balancing of investment and regional
economic growth, LEPs should be constituted in such a way as to
enable broad strategic decisions to be taken without quid pro
quo agreements between local authorities.
26. Network Rail has developed good relationships
with RDAs, where over the years a level of knowledge of rail transport
(and the benefits of investment in it) has been achieved by members
and officials. Within some (particularly smaller) local authorities,
there is often little or no rail experience and there has been
a tendency to discount investment in rail infrastructure as a
viable use of funding in favour of road or bus schemes. We believe
LEPs should undertake direct comparative appraisal of the benefits
of transport infrastructure schemes in determining its investment
priorities.
27. LEPs also need to be better equipped
to prioritise investment that delivers the best value for money
in terms of economic growth. To this end we have recently provided
a paper to the Value for Money team, led by Sir Roy McNulty, which
outlines how revised appraisal methodology would allow LEPs and
local authorities to make like-for-like comparisons between investment
in different sectors (eg housing, transport, regeneration) to
judge which makes the greatest impact on the regional economy—rather
than focusing on less tangible "user benefits" or purely
on financial benefits.
FUNDING
28. We hope that LEPs will be able to pool
planning obligation revenue (particularly from the Community Infrastructure
Levy (CIL) or its replacement) from a number of its constituent
local authorities to support rail investment across the LEP area.
29. Furthermore, we believe that Network
Rail should be given an exemption from having to pay the CIL (or
its successor) on the grounds that we are a not for dividend company
whose profits are reinvested in the railway, including revenue
from our commercial developments that directly fund station improvements,
for example. Charging Network Rail under CIL may in some cases
reduce the viability of railway development schemes and in others
see essential funds being diverted away from further planned investment.
30. We would also like the government to
consider how LEPs (or local authorities) can be enabled to raise
money against future revenue streams to fund key infrastructure
projects, such as rail enhancements, at a sub national level,
such as Local Government bonds and Accelerated Development Zones.
PLANNING
31. LEPs will have a key role in the identification
and delivery of projects funded by the Regional Growth Fund proposed
by the government. As investment in transport often has impacts
beyond individual local authority boundaries, LEPs should take
a lead in shaping those requirements and be given authority to
drive those priorities. To that end, Network Rail believes there
should be a presumption in favour of development where both LEP
and local community support such a project.
32. Further, in terms of transport planning,
Network Rail would again like to see a duty placed on LEPs to
demonstrate that they have also considered long term planning
documents published by Network Rail and the wider rail industry,
including the relevant Route Utilisation Strategy (RUS) and Route
Plans.
33. Wider than this, the planning environment
for local and regional development must also be simplified to
enable councils, LEPs and private organisations to respond quickly,
efficiently and effectively to emerging demands. Investment projects
in and around railway stations, for example, can be catalysts
for regeneration, providing economic, social and environmental
benefits. Such developments require extensive planning consent
and should be simplified to enable quicker and more efficient
decisions to be made.
12 August 2010
58 http://centreforcities.typepad.com/10-07-21%20On%20Track%20web.pdf Back
59
www.pteg.net/NR/rdonlyres/08591B39-0DF6-4CBB-8448-BB2E8AA333CD/0/FinalReporttoPTEGMarch2004.pdf Back
60
Copies of documents can be provided to the committee and are available
at www.networkrail.co.uk Back
| 
