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The performance of the Department for Transport - Fleet News

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Processed: 26-02-2010 19:10:26 Page Layout: COENEW [O] PPSysB Job: 442441 Unit: PAG2<strong>Transport</strong> Committee: Evidence Ev 23consultation, <strong>the</strong> package <strong>of</strong> legislative re<strong>for</strong>ms <strong>for</strong> QCSs should be finalised by <strong>the</strong> end <strong>of</strong> <strong>the</strong> year.Accordingly, no QCSs have yet been put in place by local authorities, but <strong>the</strong> Government would urge localauthorities to consider seriously <strong>the</strong> full range <strong>of</strong> options that are open to <strong>the</strong>m following <strong>the</strong> Act.10. Special funding <strong>for</strong> <strong>the</strong> concessionary fare scheme is costing £217 million per annum in 2009–10 (andoverall funding more than a £1 billion a year) (para 3.70, p 37), but despite this, and <strong>the</strong> scheme’s undoubtedsuccess, <strong>the</strong>re are indications that some local authorities appear still to be unhappy about <strong>the</strong> level <strong>of</strong> fundingand <strong>the</strong> distribution <strong>of</strong> <strong>the</strong> funding. What is <strong>the</strong> <strong>Department</strong> doing to address <strong>the</strong>se concerns, and will it makemore money available if it can be shown that <strong>the</strong> losses to local authorities (impacting on o<strong>the</strong>r services as aresult) exceed <strong>the</strong> funding provided?<strong>The</strong>re is no evidence that <strong>the</strong> special grant funding is insuYcient in total and <strong>the</strong> <strong>Department</strong> remainsconfident that <strong>the</strong> £217 million allocated in 2009–10 more than adequately covers <strong>the</strong> aggregate extra costsimposed by <strong>the</strong> new concession. We are, however, aware <strong>of</strong> around 30 authorities (out <strong>of</strong> a total <strong>of</strong> around260) who are concerned that <strong>the</strong>ir individual allocations may be insuYcient to meet <strong>the</strong> extra costs imposedupon <strong>the</strong>m. Ministers are <strong>the</strong>re<strong>for</strong>e considering whe<strong>the</strong>r to reopen <strong>the</strong> special grant distribution <strong>for</strong> its finalyear (2010–11) in order to address <strong>the</strong>se concerns.Such a reopening would be consulted on in detail and any new grant distribution would require <strong>the</strong>approval <strong>of</strong> Parliament. For clarity, any revised new distribution would not be based on additional fundsbut on changes to how <strong>the</strong> current funding is distributed between authorities. <strong>The</strong>re would <strong>the</strong>re<strong>for</strong>einevitably be winners and losers under any new distribution. A decision on whe<strong>the</strong>r to reopen <strong>the</strong> grant isexpected in October.In <strong>the</strong> longer term, <strong>the</strong> <strong>Department</strong> recently consulted on possible changes to who administersconcessionary travel. Any such changes would be introduced from April 2011 and would be an opportunityto look at <strong>the</strong> distribution <strong>of</strong> concessionary travel funding in total (ie including Formula Grant, ra<strong>the</strong>r thanjust <strong>the</strong> special grant element).October 2009Supplementary memorandum from <strong>the</strong> <strong>Department</strong> <strong>for</strong> <strong>Transport</strong> (POD 01a)Thank you <strong>for</strong> sending over <strong>the</strong> transcript <strong>of</strong> <strong>the</strong> <strong>Transport</strong> Select Committee held on 2 December 2009.<strong>The</strong>re are few factual inaccuracies in <strong>the</strong> transcript which I would like to correct. I understand that <strong>the</strong>corrections will ei<strong>the</strong>r be appended to <strong>the</strong> evidence as a foot note or as a free standing memorandum.Q3 (Contingent Liabilities)—Chairman and Mr DevereuxLondon and Continental Railways is <strong>the</strong> company that built <strong>the</strong> UK’s first high-speed railway, not <strong>the</strong>first high-speed train.Q4 and Q5 (Contingent Liabilities)—Chairman and Mr DevereuxYou asked about <strong>the</strong> increase in <strong>the</strong> contingent liabilities which <strong>the</strong> <strong>Department</strong> reported in its ResourceAccounts. <strong>The</strong> increase is <strong>the</strong> net <strong>of</strong> <strong>the</strong> changes shown in Note 32 (page 377) to <strong>the</strong> Resource Accounts, andincludes an increase in <strong>the</strong> amounts covered by <strong>the</strong> Network Rail Debt Issuance Programme guarantee <strong>of</strong>£7.5 billion and new Crossrail guarantees <strong>of</strong> £0.73 billion, oVset by a reduction in <strong>the</strong> Network Rail MediumTerm Notes programme guarantee <strong>of</strong> £3.9 billion. <strong>The</strong>se cause <strong>the</strong> Note 32 total to rise from £22.86 billion(1 April 2008) to £27.19 billion (31 March 2009).This is an embargoed advance copy.Not to be published in any <strong>for</strong>m until00:01 on Thursday 4 MarchQ102 (Oyster pay-as-you-go)—Mr Smith and Lord Adonis<strong>The</strong> roll out <strong>of</strong> Oyster pay-as-you-go across rail services in London was announced in 2006 (not 2007).Q104 to Q110 (A1 north <strong>of</strong> Newcastle)—Mr Clelland and Lord Adonis<strong>The</strong> A1 north <strong>of</strong> Newcastle is an All Purpose Trunk Road maintained by <strong>the</strong> Highways Agency on behalf<strong>of</strong> <strong>the</strong> Secretary <strong>of</strong> State <strong>for</strong> <strong>Transport</strong>. <strong>The</strong> <strong>Department</strong> <strong>for</strong> <strong>Transport</strong> operates, maintains and improves<strong>the</strong> A1 north <strong>of</strong> Newcastle in exactly <strong>the</strong> same way as all o<strong>the</strong>r trunk roads. Where <strong>the</strong>re is a diVerence isthat <strong>the</strong> A1 north <strong>of</strong> Newcastle is regarded as a regional route <strong>for</strong> <strong>the</strong> purposes <strong>of</strong> prioritising majorinvestment. Any major improvement north <strong>of</strong> Newcastle would be funded from <strong>the</strong> Regional FundingAllocation ra<strong>the</strong>r <strong>the</strong>n as part <strong>of</strong> <strong>the</strong> national roads programme.Q119 (TraYc Commissioners)—Chairman and Mr Devereux<strong>The</strong> TraYc Commissioners have <strong>the</strong> power to investigate any operator that fails to run punctual busservices. Whilst <strong>the</strong> Local <strong>Transport</strong> Act 2008 streng<strong>the</strong>ned <strong>the</strong> powers TraYc Commissioners have wheninvestigating an operator’s poor <strong>per<strong>for</strong>mance</strong>, <strong>the</strong> Secretary <strong>of</strong> State already had powers to make regulations

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