Subsidiarity and Proportionality and the Commission's Relations with national parliaments - European Scrutiny Committee Contents


10 Rail research and innovation

Committee's assessment Politically important
Committee's decisionCleared from scrutiny
Document detailsDraft Council Decision to endorse a plan for managing public-private rail research and innovation
Legal baseArticles 187 and 188 TFEU; —; QMV
Department

Document numbers

Transport

(36580), 17013/14, COM(14) 739

Summary and Committee's conclusions

10.1 Shift2Rail is a new Joint Undertaking between the rail industry in the EU and the EU. It is a broad-scale research and innovation initiative. The aim is to create a step change in rail technology that will help promote the competitiveness of the EU rail industry and meet changing EU transportation needs. The purpose is to carry out research and innovation that will identify how certain targets can be met and carry out projects to demonstrate feasibility of innovations.

10.2 The Shift2Rail Regulation requires the Joint Undertaking to establish and develop a strategic Master Plan. The Commission presents this draft Council Decision to endorse the proposed Shift2Rail Master Plan, which is based to a significant extent on the UK Rail Technical Strategy.

10.3 The Government welcomes the plan, telling us that it presents innovative UK rail supply companies, research organisations and universities with enhanced business opportunities and that it is expected to lead (in the long term) to improvements in the affordability, capacity and reliability of rail transport in the UK.

10.4 Whilst clearing this proposal from scrutiny, we draw it to the attention of the House for the information it gives about possible business and rail transport benefits for the UK.

Full details of the documents: Draft Council Decision endorsing the Shift2Rail Master Plan: (36580), 17013/14, COM(14) 739.

Background

10.5 Shift2Rail is a new Joint Undertaking (JU — public private partnership) between the rail industry in the EU and the EU (represented by the Commission) established by Council Regulation (EU) No. 642/2014, which came into force in July 2014. The JU is a broad-scale research and innovation initiative. The aim is to create a step change in rail technology that will help promote the competitiveness of the EU rail industry and meet changing EU transportation needs. The purpose is to carry out research and innovation that will identify how the following targets could be met, and also to carry out projects to demonstrate feasibility of the innovations:

·   an overall reduction in costs of 50%, through a reduction of the costs of developing, maintaining, operating and renewing infrastructure and rolling stock, as well as through increased energy efficiency;

·  an increase in capacity of 100%; and

·  an increase in reliability of 50%.

10.6 Shift2Rail will conduct research and demonstration projects in the following five technical thematic areas or "Innovation Programmes":

·  cost-efficient and reliable trains, including high capacity trains and high speed trains;

·  advanced traffic management and control systems;

·  cost efficient and reliable high capacity infrastructure;

·  IT solutions for attractive railway services; and

·  technologies for sustainable and attractive European freight.

10.7 The Shift2Rail Regulation requires the JU to establish and develop a strategic Master Plan.

The document

10.8 The Commission presents this draft Council Decision to endorse the Shift2Rail Master Plan. The document contains the Commission's explanatory memorandum, the results of consultations, a summary of the legal elements of the document and the text of the proposed Council Decision.

10.9 An initial version of the Shift2Rail Master Plan[27] has been developed by the JU in a process led by the Commission and in consultation with the European Railway Agency and the European Rail Research Advisory Council Technology Platform. This proposed Master Plan defines the priority research and innovation activities to drive innovation in the rail sector across the EU in the long term. In accordance with Annex I to the Shift2Rail Regulation, the Master Plan is structured around the five Innovation Programmes and provides details of the proposed work.

10.10 The Master Plan is based, to a significant extent, on the UK Rail Technical Strategy. Network Rail was closely involved with the development of the Master Plan as a founder member of Shift2Rail. The Commission led a consultation on the draft plan, which included a public consultation meeting held in June 2014 attended by close to 200 stakeholders. On 24 September 2014 the Shift2Rail Governing Board (which includes Network Rail) approved a version of the Master Plan including major contributions from relevant stakeholders.

The Government's view

10.11 In her Explanatory Memorandum of 14 January the Minister of State, Department for Transport (Baroness Kramer) says that the Government welcomes the Master Plan, which, in conjunction with the JU, is expected to lead (in the long term) to improvements in the affordability, capacity and reliability of rail transport in the UK, which will benefit UK citizens and UK rail freight customers, with the UK rail sector (particularly Network Rail) also standing to gain from the investment in rail research and innovation.

10.12 The Minister tells us that:

·  there are no specific policy implications arising directly from the plan, as it is largely based on the UK Rail Technical Strategy;

·  UK companies may wish, however, to respond to future open calls which will be based on the Master Plan; and

·  they can approach FutureRailway (a cross-industry body supported by Government that both funds research and innovation and provides independent advice on rail research and innovation) for assistance in preparing proposals that seek to deliver aspects of the Master Plan.

10.13 The Minister comments further that:

·  Shift2Rail will provide innovative UK rail supply companies, research organisations and universities with enhanced business opportunities to develop and exploit new technologies and solutions;

·  it will do this by co-funding collaborative research and innovation activities at a size and scale that cannot be provided through national programmes; and

·  it will also help UK players gain access to EU partners with skills or resources they cannot readily find in the UK.

10.14 Finally, the Minister tells us that the draft Council Decision to endorse the Master Plan has no direct financial implications. But she reminds us that:

·  the size of the JU programme itself is expected to be between €800 million and €1 billion (£623 million and £779 million), with the Commission contributing up to €450 million (£350 million) between 2014 and 2020 and the rail industry contributing the remainder;

·  a quarter of the research funds would be designated for SMEs, research organisations and universities through open calls; and

·  the proposed Commission contribution falls within existing budgets.

Previous Committee Reports

None.


27   http://ec.europa.eu/transport/modes/rail/doc/2014-09-24-draft-shift2rail-master-plan.pdfBack


 
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Prepared 30 January 2015