Railtrack (Hansard, 7 March 1994)

§ Mr. Dobson
To ask the Secretary of State for Transport (1) what is the basis upon which grants to local authorities in connection with section 20 of the Transport Act 1968 to meet increased track charges to be levied by Railtrack for passenger railway operations will be reduced in the year 1995–96 as compared with 1994–95;
(2) what is the basis upon which grants to local authorities in connection with section 20 of the Transport Act 1968 will be increased in the financial year 1994–95 to meet increased track access charges to be levied by Railtrack for passenger railway operations;
(3) what proportion of the increased track charges to be levied by Railtrack for passenger railway services operated under the provisions of section 20 of the Transport Act 1968 will be met by locally-raised revenue, including the council tax;
(4) whether grants to local authorities under section 20 of the Transport Act 1968 to meet increased track access charges to be levied by Railtrack for passenger rail way operations will be made directly to passenger transport authorities or to their constituent metropolitan authorities.

§ Mr. Freeman
Special grants will be paid in 1994–95 to the six English passenger transport authorities, PTAs, to cover the additional costs of maintaining existing service levels of metropolitan passenger rail services resulting from the restructuring of the railway and the introduction of new charging systems for the use of track and rolling stock. In Scotland the extra costs arising in 1994–95 will be paid direct to Strathclyde regional council through the Scottish Office.
These grants will cover the difference between the costs that the passenger transport executives, PTEs, would have incurred under the existing regime and the revised costs once the new charging systems are in place, less amounts being paid to the PTEs in respect of past investment that they have financed through capital grant.
It is our intention to cover the additional costs in 1995–96 and beyond through enhancing the rail "bolt-on" within metropolitan districts' standard spending assessment. The Government will he reviewing the formula for establishing the "bolt-on" in the light of the new charges. In Scotland, the additional costs will be covered in future local government finance settlements.
The proportion of the. cost of supporting local rail services by locally raised revenue can be expected, therefore, not to increase.

§ Mr. Wilson
To ask the Secretary of State for Transport if he will make it his policy that grants awarded to local authorities in PTA areas, for the purpose of meeting additional charges imposed by rail operators and resulting from access charges set by Railtrack should be ring-fenced for that purpose beyond 1994–95.

§ Mr. Freeman
As I explained in my letter to the chairman of the public transport committee of the Association of Metropolitan Authorities of 30 September 1993, special grants will be paid to the six English passenger transport authorities in 1994–95; thereafter the additional costs resulting from the introduction of new charging systems following the restructuring of the railway will be recognised by enhancing the rail "bolt-on" within metropolitan districts' standard spending assessment.
10W
In Scotland the additional costs arising in 1994–95 will be paid direct to Strathclyde regional council through the Scottish Office. Thereafter, the additional costs will be covered in future local government finance settlements.