Draft Lyons Inquiry

Freight on Rail would like to thank Sir Michael Lyons for the opportunity to comment further on his review of local authority financing.

Definition of Freight on Rail
Freight on Rail is a campaign working to get goods off roads and onto rail as an important step in developing a more sustainable distribution system.

The members are as follows: - Rail Freight Group, EWS, Freightliner, RMT, ASLEF, TSSA, AMICUS, Network Rail and Transport 2000

When considering rail freight provision it is important to take into consideration that rail freight crosses local and regional authority boundaries and take account of regional and national benefits of rail freight interchanges as well as the local effects. In this context, rail alignments and suitable sites for interchanges need to be protected in Local Development Frameworks.  

1. With relation to the Eddington Transport studyGovernance
   In order for local authorities to work effectively in partnership to deliver transport improvements land use planning and transport need to be fully integrated so that the transport links are not added onto infrastructure projects. This is crucial if sustainable transport solutions such as rail are to be part of the transport solutions as recommended by the Stern review.
   
   Convening
   Local authorities need direction to work in partnerships. If local authorities are to make the links between transport and the other elements of economic development and quality of life they need to engage with industry groups such as Network Rail, the Rail Freight Group, Freight on Rail and its members, environmental NGOs and unions.
    
   
2. Funding
   The next round of Regional Funding allocations (RFA) in 2008 should include rail projects. We were disappointed that rail schemes were not included in the first round of RFAs earlier in 2006 and believe strongly that rail should be included in future rounds so that there is an integrated approach to transport funding in the regions.
   There was a serious lack of clarity about whether rail could be included in the 2006 bids. Authorities were not told by the Department in the Spring of 2006 that they could or should include rail in their RFA bids. The Government Offices for the Regions were telling authorities that it was not appropriate to include rail in the first round, even though a few authorities did actually include rail schemes.
    
   Therefore it is crucial that the DfT guidelines are clear in future rounds of RFAs. Local and regional authorities should be able to prioritize rail freight schemes. they should be able to choose to fund rail freight schemes and shift funds to rail freight from road schemes and public transport schemes if that is the best way to reduce road congestion, reduce accidents and emissions pollution.
    
   There are a significant number of rail freight schemes which could benefit regions from RFAs such as loops, small gauge enhancement schemes into ports and terminals.
    
   Flexibility to use local authority road maintenance budgets for rail freight projects instead
   Research commissioned by Freight on Rail highlights that in counties with significant rail freight potential, such as bulk, waste or port traffic, the local transport authorities could save as much as  £770,700 on local road maintenance each year if certain goods in its area go by rail rather than road. HGVs are up to 160,000 times more damaging to road surfaces than the average car; some of the heaviest road repair costs are therefore almost exclusively attributable to the heaviest vehicles. See web site at www.freightonrail.org.uk for full research. This suggests that local authorities should be free to use their road maintenance budget to support rail freight facilities and services.”
    
   Flexibility within LTP funding needed
   Instead of using LTP money to fund road enhancements local authorities should be able to fund rail freight projects if this could remove road congestion and carbon emissions.
    
   The Rail Passenger Partnership Funding, which was stopped in December 2002, proved to be a good mechanism for local authorities to realise the benefits of passenger rail, through partnership funding. A similar scheme would allow local authorities to promote rail freight schemes. Currently local authorities have no real revenue or capital funding schemes for rail, although LTP capital funds can be used for rail interchanges.
    
   Freight Facility Grants are an important mechanism in helping to offset the initial start up costs of the shift to rail.
    
3. Barker Review of Land Use Planning
   Governance
   We welcome the concept of a proposed planning commission to evaluate national strategic infrastructure projects and the recognition that major infrastructure proposals need to be evaluated in the context of national and regional benefits. A national policy framework can also help to rule out some proposals at an early stage. In its response to the Barker report, Freight on Rail has commented on what the strategic objectives should be for the planning commission in rail freight terms and identified what  the criteria is for location of strategic rail freight interchanges.
    
   We however envisage that the majority of planning applications for rail freight schemes will not be of sufficient scale to be considered by the Planning Commission and will continue to be determined at a local level. We believe strongly that national rail freight planning guidance is needed to give direction outlining the national and regional benefits of rail freight if strategic rail freight sites and routes are to be protected for this use, otherwise these sites will loose out in the market-place to housing and retail and rail alignments will be obliterated. Without the support of the SRA, the freight railhead site at Cricklewood, which is a national strategic site, could have been allocated to housing to the exclusion of rail.
    
   Rail freight may loose out to retail and housing if changes are made to the rules relating to the green belt. Incentives must not penalise rail freight otherwise it may  loose out to other uses on vacant and brownfield sites.
    
   Convening
   Land use planning and transport planning need to be integrated so that transport is an integral part of infrastructure planning. This means that transport, planning and economic development authorities need to work together.
    
4. Funding
   See section on Regional Funding Allocations in Eddington Section Funding above.
   Rail freight economic, environmental and social benefits must be taken into account in evaluating transport schemes.
    
5. Why we need rail freight?
   To protect the environment
   
   Rail freight makes a vital contribution to protecting the environment and helping the Government to meet its commitments to improving air quality and tackling climate change. Overall rail produces less than one per cent of the total U.K. emissions of carbon dioxide, the principle greenhouse gas, compared with 21 per cent from road transport1.
    
   Rail freight produces between four and ten times less emissions than road haulage, depending on the weight of the product moved.
    
   To relieve road congestion
    
   An average freight train can remove 50 HGVs from our roads – Network Rail
    
   An aggregates train can remove 120 HGVs from our roads – Network Rail
    
   Rail freight is able to act as a freight by-pass, by offering a more reliable alternative to road – something that will be more attractive as road congestion continues to worsen. The Government’s own forecasts show that it is set to grow by up to 37 per cent over the ten year period to 2010.
    
   To offer an alternative to other issues facing road transport
   
   Road congestion is causing extended and less predictable journey times.
   Existing driver vacancies 47,000 with the average HGV driver age now 55.
   Working Time Directive is estimated to require another 30,000 and to cost the road freight industry an extra £1 billion per annum.
   Taxation by distance and tougher emissions regulations on the agenda.

Philippa Edmunds Campaigner        Freight on Rail   16th January 2007

1. The Railway Forum 2005