Strategic Rail Authority’s rail freight grant moratorium threatens further misery for motorists

22nd January 2003

The proposed suspension of rail freight grants by the Strategic Rail Authority (SRA) for the next financial year 2003/4 could bring a further 5 million lorry journeys annually to our already over congested road network with all the resulting economic, environmental and social disadvantages.

Freight on Rail, a partnership between the rail freight operators, the transport trade unions and Transport 2000, is concerned that this Government U-turn and uncertainty as to when grants will be reinstated, will force industry to opt for road transport.

This runs contrary to the Government’s stated policy to shift goods off Britain’s roads and onto rail and consistent public support for this policy. With the average HGV equivalent to three cars, motorists will now endure even more congested and dangerous roads as a result of a likely 2.5 per cent increase in HGVs each year without these grants. This follows the admission by the Government last December that its previous traffic forecasts under-estimated the year on year increases.

These grants, introduced 25 years ago, have contributed to a 50 per cent increase in rail freight since 1994 representing 12 per cent of the UK surface freight market. They have stimulated significant matching private sector investment in rail freight. Since 1994, rail freight operators alone have invested £1 billion in the industry, and there has been evidence that would-be rail freight customers had begun to re-enter the market as confidence on services and deliverability returned. This sudden U-turn will jeopardise this as the manufacturing and distribution industries reassess their longer term strategies in favour of road.

Freight on Rail campaign co-ordinator, Philippa Edmunds said, "The Government has reneged on its promises to promote rail freight in ‘its Ten Year Plan’ without any consideration either for the rail freight and logistics industries or the travelling public who already have to suffer the most congested road network in Western Europe. There is nothing business hates more than uncertainty. One has to ask if this is a further nail in the coffin for the integrated transport policy?"
 

Notes to editors:

Freight on Rail is a partnership between transport trades unions, ASLEF, RMT and TSSA, the rail freight operators EWS, Freightliner and GB Railfreight, the Rail Freight Group and Transport 2000. It works to promote the economic, social and environmental benefits of rail freight both nationally and locally. It advocates policy changes that support the shift to rail and provides information and help on freight related issues. In particular, it aims to help local authorities through all stages of the process such as planning a rail-freight strategy, accessing grants and dealing with technical matters.

International Union of Railways research in 2000 showed that road transport has four times higher external costs, excluding congestion, than rail which means that society at large will be footing the bill for the extra costs to the health service caused by pollution and accidents. HGVs, although representing 9 per cent of vehicles on the road, cause nearly 30 per cent of CO2 emissions.

Nearly 40% of CO2 emissions from road transport came from buses and lorries though only representing 12% of vehicles on the road, (of which buses would represent about 3%). Motorists' Forum 2000
 

For further information contact:- Philippa Edmunds, Freight on Rail campaigner
Tel: 0208 241 9982: email philippa@freightonrail.org.uk