HL Deb 30 October 2001 vol 627 cc153-4WA
The Earl Mar of Kellie

asked Her Majesty's Government:

What importance they place on the linking of the reopening of the Stirling Alloa Dunfermline railway with the creation of a European ferry terminal at Rosyth; and [HL820]

Which section of the Department for Transport, Local Government and the Regions will be responsible for railway re-openings in Scotland, in the light of the announcement during the Railtrack Statement on 15 October (H.L. Deb., col. 393) that the new company limited by guarantee will deal only with the operation, maintenance and repair functions of Railtrack; and [HL821]

Whether they will rank in order of priority the following network-expansion projects in Scotland: (a) Edinburgh Crossrail; (b) Larkhall; (c) Stirling Alloa Dunfermline; and (d) Edinburgh Borders Carlisle. [HL822]

Lord Falconer of Thoroton

Priorities for developing the GB rail network, including railway re-openings, are for the Strategic Rail Authority (SRA), and will be set out in the SRA's Strategic Plan, which will be published in November. The SRA works closely with the Scottish Executive on proposals for investment in Scotland's railway, with Railtrack, and with other stakeholders involved in individual schemes.

The Railways Sponsorship Division of the Department for Transport, Local Government and the Regions is responsible for paying grant to the SRA to enable the SRA to carry out its statutory functions. The SRA can provide funds for railway re-openings, and the Scottish Executive also has powers to fund schemes in Scotland directly.

As network controller. Railtrack is a key stakeholder in all infrastructure projects. The Government have made a funding agreement with Railtrack plc's administrator to ensure that Railtrack's network responsibilities continue to be fulfilled during administration. The administrator is working to prioritise those projects already programmed by Railtrack. The Government have stated their intention of putting a proposal to the administrator for a company limited by guarantee (CLG) to take over Railtrack's railway assets and its role as network operator. This successor company would continue to be responsible for smaller-scale enhancements, possibly including re-openings. Major enhancements may be taken forward and financed by project companies called special purpose vehicles, and would not then have to rely for their funding on the CLG. This approach should help ensure better use of resources, with projects delivered on time and within budget.

The Earl of Mar and Kellie

asked Her Majesty's Government:

Whether, with particular reference to Longannet Power Station, it is a perverse incentive that a railway re-opening project which reduces freight train mileage is seen as unattractive because the new shorter route would earn less in track access charges than the existing longer route; and whether this situation will change for Railtrack's successor. [HL823]

Lord Falconer of Thoroton

There is no such perverse incentive. The reduction in variable track access charges which Railtrack would receive as a result of freight operators being diverted to a shorter route are offset by a reduction in their variable costs. Fixed costs of the existing network (maintenance and renewal) are allocated to franchised passenger operators and will not be affected by freight operators using the new route. In addition, the freeing up of capacity on the existing route will enable Railtrack to offer new paths for passenger trains and earn an additional return from them.