Reaction to the UK Government consultation on rail reform has been swift, particularly from the freight sector. Representative bodies have warned the Transport Secretary that she must make freight a significant part of the new nationalised landscape. Yesterday (18 February) Heidi Alexander launched a consultation based on a “passengers first” emphasis, which has raised alarm in the freight sector.
Representative bodies have welcomed the opportunity to take part in yet another consultation on the future of the rail industry. However, a sheaf of responses all say that freight has been overlooked by the Transport Secretary. “A Railway Fit for Britain’s Future” consultation opened yesterday and will last for eight weeks.
Significant legal changes
Yesterday’s launch of another wide-ranging consultation on the future of Britain’s railways, could be construed as more talk without the walk. However, the industry has been more pragmatic in its response. The Rail Freight Group says it welcomes commitment to freight but warns of risk from an “all powerful” Great British Railways – the body which will manage infrastructure and most passenger operations. It will impact freight operations but, under the UK Government’s plans, freight operations will remain in the private sector. RFG has warned that significant legal changes are being planned, and these could pose a threat to rail freight services.
“It is therefore essential that any new laws give certainty of access to enable businesses to invest and to grow,” said Maggie Simpson OBE, RFG Director General. “These are profound changes to railway legislation and it is essential that the resulting framework is effective in protecting the right of freight to run on the network and to meet its customers’ needs. We look forward to working with government to ensure that this outcome is delivered through the legislative process.”
Weakened role for ORR
The UK Government’s plans include scrapping the current legal framework for awarding rail capacity to freight operators, moving power to GBR, along with potential new powers for mayoral authorities. The RFG noted that the proposals will also weaken the role of the independent Office of Rail and Road in determining rail access, although they will retain an appeal role. The Government has, however, passed on its mandated target for increasing rail freight growth as a statutory duty on GBR to promote freight.
Later this month Great British Railways Transition Team is hosting an event, organised with another industry representative body, Logistics UK, to “Demystify Rail Freight”, as reported earlier this week. Logistics UK, which represents businesses with seven million people directly employed in the making, selling and moving of goods, says the vital role of rail freight in supporting the UK economy must not be overlooked. According to the trade body, rail freight is critical for helping the UK meet its sustainable transport goals and boost economic growth.
Annual reporting required
While in principle this consultation precedes UK-wide legislation, it should be noted that transport matters are developed in the UK. The Government in London has direct powers only in England, with the other nations making their own decisions. “The Railways Bill must include robust mechanisms to protect fair access for freight operators and grow rail freight,” said Ellis Shelton, their Senior Policy Advisor – Rail. “We will be scrutinising the government’s plans carefully in this consultation. If measures for freight are lacking, Great British Railways will not be able to meet its obligations to promote rail freight and the government will not be able to achieve its rail freight growth target.
Logistics UK has also called for public accountability to be built into Great British Railways. “It is vital that it considers the impact its decisions will have on rail freight when making decisions for the whole railway. We are therefore calling for GBR to produce an annual report, for Parliamentary scrutiny and the scrutiny of the regulator, setting out its measures to protect fair access to the rail network and deliver rail freight growth. This report should set out how GBR is working with the logistics sector and other parts of the UK government, English regions and devolved governments to achieve this.” The consultation process is open now and runs for eight weeks.