§ 57. Mr. RoweTo ask the Secretary of State for Transport what measures the Government take to encourage the use of rail rather than road.
§ Mr. PortilloThe Government believe that in general users should decide which mode of transport to use, taking account of relative convenience, quality and cost. They therefore seek to ensure that different means of transport can compete fairly on equal terms. Where there are special reasons for encouraging one type of transport rather than another—that is, to relieve road congestion—and it is cost-effective to do so, the Government pay grants.
The Government also recognise that in some circumstances transferring freight from road to rail can have substantial environmental benefits and make grants under section 8 of the Railways Act 1974 towards the capital cost of freight facilities.
The Government's policies on the financing of railways are set out in more detail in their response to the third report of the Transport Select Committee, session 1986–87.