HL Deb 08 February 1999 vol 597 cc10-2WA
Lord Berkeley

asked Her Majesty's Government:

What criteria will be used by the Office of Passenger Rail Franchising and the Rail Regulator in assessing applications for new rail passenger services under the "moderation of competition" provision. [HL716]

Lord Whitty

Approval of access rights is a matter for the Rail Regulator. The regulator issued a consultation document on the second stage of his policy on Moderation of Competition in June 1998. (New Service Opportunities for Passengers—Criteria for Evaluation.) In it he stated his intention to align closely assessments of the costs and benefits of new service proposals with the factors taken into account in the OPRAF Planning Criteria. The assessments would inform the regulator's conclusions regarding the balance of passenger and taxpayer interests. Particular attention would be paid to the impact of proposals on the franchise director's budget.

Lord Berkeley

asked Her Majesty's Government:

Whether it welcomes competition from new entrants in the provision of rail passenger services on

  1. (a) routes subject to "moderation of competition"; and
  2. (b) routes where there are no restrictions on competition. [HL717]

Lord Whitty

Last year's White Paper,A New Deal for Transport, recorded the Government's concern that open access passenger rail competition without adequate safeguarding of the public interest could lead to loss of passenger benefits in areas like ticketing and timetables: and their intention that the Strategic Rail Authority will set the longer-term framework for competition. The Government therefore welcome the provisions in track access contracts which restrict competition between train operators that the Rail Regulator has already put in place as part of his moderation of competition policy. This is to ensure that new services are provided for the public interest and do not undermine existing franchise services and passenger benefits.