A number of leading trade associations and transport organisations have jointly written to the Treasury regarding the new Railways Bill, calling for the Government to amend the bill in order to safeguard future rail infrastructure investment and economical growth.
The organisations are calling for changes to two sections of the Railways Bill which they claim could ‘weaken business confidence and deter investment’.
Requested amendments are as follows:
- Schedule 2. As drafted, the Bill currently allows a future Transport Secretary to effectively vary and reduce ‘five-year’ infrastructure funding settlements at any time, weakening business confidence and jeopardising future investment. Stable, visible, long-term funding is essential to control costs, support timely delivery, and encourage innovation and investment, and for the last 35 years has been a long-established way of funding infrastructure, maintenance and renewals.
- Clause 72. The Railways Bill also as currently drafted, creates new powers for Government to change legislation in future in areas that would affect investments in and around the railway, including depots, freight terminals, port and airport terminals, and devolved rail networks.
Therefore, the coalition is calling for new safeguards to help maintain investment certainty, attract future private funding and support the Government’s wider growth agenda.
The published letter aims to make the case for Great British Railways to be established in order to attract additional investment from third-party partners and support an effective, resilient transport system that underpins economic growth.
Railway Industry Association (RIA) Chief Executive Darren Caplan said:The Railways Bill represents a once-in-a-generation opportunity to create a modern railway that supports growth, attracts investment and delivers value for taxpayers. So whilst we and the rail supply sector support much of what is in the Railways Bill, the changes we are proposing are targeted, practical and will help save public money.
As the Bill enters the Second Reading in the House of Lords, there is an opportunity to ensure this enduring legislation is improved and provides the long-term certainty investors need and protects confidence across businesses. By making a small number of targeted amendments, the Bill can be strengthened to boost greater private investment and help ensure the UK railway continues to deliver economic benefits for passengers, businesses and taxpayers for years to come.
