§ Mrs. DunwoodyTo ask the Secretary of State for Transport what mechanisms the Rail Regulator has in place to ensure that competition between operators is encouraged after 31 December. [38528]
§ Mr. WattsThe Rail regulator has published a policy statement setting out his approach to competition issues for railway passenger services. He has concluded that no significant competitive new entry should be allowed before 31 March 1999 to allow the railway industry to settle down in the early period of restructuring. He believes the franchising process itself creates considerable potential for competition, even without allowing new entry by open access operators. Substantial restrictions will apply for three years after 31 March 1999—until 31 March 2002. The Rail Regulator intends to review the restrictions in 2001. He believes that these steps are necessary for the development of a more competitive environment for passenger services in the long term.