Processed: 26-02-2010 19:10:26 Page Layout: COENEW [E] PPSysB Job: 442441 Unit: PAG2Ev 22<strong>Transport</strong> Committee: EvidenceWe should also note that <strong>the</strong>re is no universally accepted definition <strong>of</strong> “accessible”; however, <strong>the</strong><strong>Department</strong> does publish a Code <strong>of</strong> Practice which sets <strong>the</strong> standards that rail station infrastructure shouldmeet when facilities are renewed or upgraded. <strong>The</strong> Association <strong>of</strong> Train Operating Company (ATOC)’s KeyPer<strong>for</strong>mance Indicator measure <strong>for</strong> level access <strong>of</strong> “access from <strong>the</strong> street to plat<strong>for</strong>m”, which drives <strong>the</strong>classification in <strong>the</strong> National Rail Enquiry Service (NRES) as well as <strong>the</strong> table above, is widely seen to beout-<strong>of</strong>-step with current customer expectations. Visibility <strong>of</strong> station facilities in <strong>the</strong> National Rail Enquiriesdatabase overall also needs improvement. ATOC has just completed carrying out a programme <strong>of</strong> accessaudits to address this, and is in <strong>the</strong> process <strong>of</strong> creating a new “station journey planner” which should beavailable on <strong>the</strong> NRES website by <strong>the</strong> end <strong>of</strong> <strong>the</strong> year.8. <strong>The</strong> Resource Accounts include (Note 32.1, p 379) reference to indemnities relating to Crossrail enteredinto during 2008–09 (£730 million). Some <strong>of</strong> this relates to “voluntary” funding from businesses and from BAA.At what point are <strong>the</strong> contributions expected and where <strong>the</strong>y are voluntary is <strong>the</strong>re anything <strong>the</strong> <strong>Department</strong>can do if <strong>the</strong>y are not <strong>for</strong>thcoming?<strong>The</strong> City <strong>of</strong> London Corporation has committed to make a contribution towards <strong>the</strong> Crossrail project <strong>of</strong>£200 million. <strong>The</strong> payment shall become payable on or after 31 March 2016 when a number or relevantmilestones relating to completion <strong>of</strong> civil construction at <strong>the</strong> Crossrail Farringdon and Liverpool Streetstations and <strong>the</strong> Stockley Viaduct works have been met.<strong>The</strong> City <strong>of</strong> London Corporation has also agreed to seek voluntary contributions towards <strong>the</strong> Crossrailconstruction costs from very large businesses across Greater London with <strong>the</strong> aim <strong>of</strong> raising £150 million.<strong>The</strong> Government has agreed to support <strong>the</strong> City in its eVorts to raise <strong>the</strong>se voluntary contributions, and<strong>the</strong> City has agreed to guarantee <strong>the</strong> first £50 million <strong>of</strong> this amount. <strong>The</strong> detailed arrangements <strong>for</strong> raisingvoluntary contributions, including timescales, have not yet been finalised.<strong>The</strong> contribution from BAA towards Crossrail is subject to a letter agreement entered into by HeathrowAirport Ltd (HAL), a wholly-owned subsidiary <strong>of</strong> BAA which owns and operates Heathrow, and <strong>the</strong><strong>Department</strong> <strong>for</strong> <strong>Transport</strong> on 10 November 2008. Under <strong>the</strong> terms <strong>of</strong> <strong>the</strong> agreement HAL agrees to pay acontribution <strong>of</strong> £180 million (£230 million in outturn prices) to DfT in two instalments linked to progresson construction <strong>of</strong> <strong>the</strong> Stockley Viaduct works, which will deliver greater capacity and reliability <strong>for</strong> railservices into Heathrow. <strong>The</strong> first instalment will be paid on or after 1 April 2013 at <strong>the</strong> point that 50 per cent<strong>of</strong> <strong>the</strong> value <strong>of</strong> <strong>the</strong> Stockley Viaduct works has been carried out. <strong>The</strong> second instalment will be paid when<strong>the</strong> Stockley Viaduct works have been completed to allow trial running <strong>of</strong> trains, and is expected to be madein 2016.Buses/Local <strong>Transport</strong>9. Previous SR periods included objectives to increase bus and light rail patronage. While this has been achievedoverall, largely as a result <strong>of</strong> increased usage in London and <strong>the</strong> impact <strong>of</strong> <strong>the</strong> national concessionary farescheme (para 3.68, p 37), <strong>the</strong> suggestion is that, o<strong>the</strong>rwise, increases are patchy. <strong>The</strong> Report suggests that“eVective partnerships between bus operators and local authorities are <strong>the</strong> key to successful bus operations.<strong>The</strong>re are many such examples, but not enough” (para 3.58, p 35) and para 3.62 talks about <strong>the</strong> new qualitycontract schemes under last year’s Local <strong>Transport</strong> Act. Are any <strong>of</strong> <strong>the</strong>se quality contracts now up and running,and if so what impact are <strong>the</strong>y having on services and levels <strong>of</strong> usage? How else can bus patronage be increased?<strong>The</strong> Government continues to believe that eVective partnerships have been key to providing successfulbus services. In parts <strong>of</strong> <strong>the</strong> country where bus patronage is rising and passengers are experiencing a higherquality <strong>of</strong> service, it is because local authorities and bus operators have worked toge<strong>the</strong>r to deliver packages<strong>of</strong> improvements designed around <strong>the</strong> needs <strong>of</strong> local passengers. Generally <strong>the</strong> operator will oVer a goodvalue service with attractive ticket options, that is reliable and punctual, with modern vehicles and backedup with eVective marketing. For <strong>the</strong>ir part, <strong>the</strong> local authorities will support <strong>the</strong> operation <strong>of</strong> <strong>the</strong> bus servicesby providing bus priority infrastructure, better transport in<strong>for</strong>mation and a supportive parking policy. It isthis package approach which enables buses to meet <strong>the</strong>ir full potential and attractive additional patronage.This is why <strong>the</strong> Local <strong>Transport</strong> Act 2008 included provisions to help enable successful partnerships t<strong>of</strong>lourish in more <strong>of</strong> our communities.<strong>The</strong> <strong>Department</strong> has been greatly encouraged by <strong>the</strong> progress that is being made as a result <strong>of</strong> <strong>the</strong> Act. Itis clear that <strong>the</strong> Act has been a catalyst <strong>for</strong> many local authorities to review what improvement <strong>the</strong>ir localcommunities most want from <strong>the</strong>ir bus services, and how <strong>the</strong> new statutory arrangements can help <strong>the</strong>m todeliver those improvements. <strong>The</strong> <strong>Department</strong> has been working with a number <strong>of</strong> local authorities and busoperators who are considering implementing partnership arrangements that make use <strong>of</strong> <strong>the</strong> new statutorypowers, and we expect new partnerships to come to fruition in a number <strong>of</strong> towns and cities in <strong>the</strong>months ahead.This is an embargoed advance copy.Not to be published in any <strong>for</strong>m until00:01 on Thursday 4 March<strong>The</strong> Government has also recognised that, because partnerships depend on both local authorities and busoperators being willing partners, <strong>the</strong>y cannot always be relied upon to deliver <strong>the</strong> necessary improvements.<strong>The</strong> Act <strong>the</strong>re<strong>for</strong>e also included provisions to make Quality Contracts Schemes (QCSs) a much more realisticoption where <strong>the</strong>y are in <strong>the</strong> public interest. <strong>The</strong> <strong>Department</strong> has recently consulted on <strong>the</strong> draft regulationsand guidance that are needed to support <strong>the</strong> provisions in <strong>the</strong> Act. Subject to <strong>the</strong> outcome <strong>of</strong> <strong>the</strong>
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