Future proof? Transport investment in the age of austerity.
The Jury’s Inn, Broad Street: Tuesday October 5 2010; 19:00 – 20:00
Chair: Dan Milmo, Transport Correspondent, The Guardian
Speakers:
Rt. Hon. Theresa Villiers MP, Minister of State for Transport
Richard Hebditch, Campaigns Director, Campaign for Better Transport
Dr. Robert Michern,
Paul Plummer, Director for Planning and Development, Network Rail
Sponsors:
Network Rail
Chairing the event, Dan Milmo opened by communicating the bleak outlook of ‘future proofing’ transport investment given the significant cuts to expenditure which are likely to be made shortly. Milmo explained that the cuts will result in fewer bus and train routes as well as increases in rail fares.
Putting forward the question of whether or not a ‘future proofing’ transport investment is politically feasible, Milmo suggested that the number of people using public transport in the future will decrease. “The private sector has to fill the gap somehow’ says Milmo
Theresa Villiers raised the issue of tackling the deficit emphasising that “we have inherited the problem.”
Highlighting the Chancellor’s acknowledgement of the benefits in capitalising infrastructure Villiers argued the case preferring a high speed rail network over a third runway at Heathrow airport. Villiers commented that whilst environmental factors, including noise pollution and carbon impact, may be damaging in the short-term the commitment to a high speed rail network extending into the north of the country is the first step to a national network. She explained that it is this national network which is crucially important to boost prosperity and provide a lower carbon alternative to short haul flights.
Taking into account relevant discussions with the Treasury Villiers also called for the widespread introduction of electric cars culminating in a reduction in carbon emissions.
Speaking about the Local Sustainable Transport Fund Villiers went on to underline the importance of reaching the Party’s carbon goals as well as reducing congestion. Villiers explained that although the country was economically challenged the Party must ensure that local authorities possess the freedom to deploy resources.
Regarding ‘future proofing’ the transport sector Villiers described the perennial underlying problem, delivery time, stating that the goal of the government is not to be “short-sighted” but to focus on long-term decisions and whole life costs.
Building cross-Party consensus, as well as showing support for Cross Rail, Villiers says, is integral to reducing carbon emissions, cost effectiveness, future proofing of transport and re-energising the economy: “We must continue to upgrade and improve existing rail networks in an affordable manner.”
The main issue, she clarified, is the need for better value for money stating that although a 40% increase in passenger numbers was previously inconceivable this goal has since been met with contributions from the taxpayer being doubled. She called for greater accountability by Network Rail, with recent figures indicating a cause for concern, the desire for improving rail safety as well as productivity. Finally, Villiers discussed franchise reform as an important way of improving efficiency for passengers as well as encouraging private sector investment.
“We are prepared to consider long term franchises” declared Villiers. This includes providing railways with more flexibility rather than “micro-managing”. “A more qualitative approach needs to be made for the taxpayer and not binary like our predecessors” Villiers remarked.
Milmo then introduced Paul Plummer, an expert in railway finances.
Discussing costs, Plummer also emphasised the need for Network Rail to become more accountable. Plummer believes that the marriage of a greater evolution of accountability with a better partnership across the whole industry is required to retain the best elements of the national network. Freight operators should be able to use and have access to the network, with central help, so as to help revenue and to reduce industry costs.
Plummer announced the responsibility of the Party to prioritise placing the environment at the forefront of its focus when making decisions on funding solutions. Milmo raised in response the possibility of devolving Network Rail into regions as well as merging track owners with the rail operators.
Referring to the spending review Hebeditch placed prominence on maintaining existing transport services including roads and public transport. Highlighting the dangers involved, Hebeditich called attention to avoiding the spiral of decline which he explained was the central priority of the spending review.
Listing several options Hebeditch argued against the growth of a road network. He believes that the existing space be utilised to unlock the potential of our cities so that by example, hard shoulders be used as well as traffic being redirected appropriately as needs required.
Hebeditch spoke positively about the transport system in the UK, calling it “well connected” with great investments being made. Supporting the new Government’s prioritisation of spending, Hebeditch called for focus on how spending is appraised, concentrating on the possible environmental impacts in particular carbon efficiency; so in relation to freight consideration must be given to the size of each load and haulers must learn to cooperate with eachother.
Hebeditch elucidated by explaining that by combining strategic planning with priority spending “we are able to support capacity improvements meaning more freight on rail”.
Commenting on urban areas, Hebeditich called for an investment in rail capacities in the north of the country in order to reduce congestion by encouraging light rail.
Hebeditch spoke of his desire to encourage behaviourial change regarding the way towns and cities are planned by encouraging walking rather than driving, calling for capital funding to create small scale improvements and thereby improving employment.
Listing the dangers of the lack of support regarding transport investments he spoke about switching to greener modes of transport: “Prices of train and bus fares will be over a third higher by next Election. Our Carbon reduction strategy won’t be helped if this grows”.
Dr. Robert Michern examined the challenge that the economy and climate change presents.
Agreeing with Hebeditch’s earlier statement, Michern appealed for greater efficiency on the existing transport system to encourage economic development with innovative ways of financing being made to reap economic benefits.
Michern spoke about trains between major cities being surprisingly slow and “horrifically packed” and although there is considerable uncertainty in investment the level of historic micromanagement only increases intensity. Raising the notion of alternative fuels, he stated that whilst biofuels are beneficial for low carbon transport the amount of land needed to grow biofuels is completely impractical.
“Train-line investment is not glamorous but is important” explained Michern. Declaring that investment will decrease over the next four years “getting better results for less, is what is important” Milmo concluded.
A question and answer session followed.
A fringe attendee raised the issue of Cross Rail. Questioning the Government’s expenditure, the attendee suggested that networks of limited sizes be improved and connected running through the centre of London which he felt would be a cheaper option.
Offering a response, Theresa Villiers stressed her support of Cross Rail regarding the project as being an important one that will yield significant benefits. Not shying away from the significant cost of Tube upgrades, Villiers spoke of the Cross Rail as being a significant capital project.
Paul Plummer interjected; Cross Rail was both “disruptive and expensive”.
An attendee then asked the panel about their views of the air track. Villiers stated that the improvement of rail connections to Heathrow is of vital importance although it is seemingly difficult to predict public support in terms of funding.
A heated debate then ensued following the question of vertical integration in the freight industry.
Concluding the session, Villiers spoke of maintaining and supporting a flourishing freight railway sector offering a spectrum of options including decentralisation, joint ventures, devolution and accountability to reap significant benefits.
