1.   Re Q135  Mrs Dunwoody referred to the revenue funding for the rail industry as set out in the 10 Year Plan and asked if the SRA could confirm that this is the revenue budget that the SRA is currently working with. Also, whether the SRA could expand the answer to Q134 explaining why the revenue required for the multi-modal studies proposals is poorly estimated and how these schemes can be properly appraised without taking account of the need for subsidy.

  The funding available to the railways over the 10 Year Plan period was increased at the time of the SRA's Strategic Plan in January 2002 (SP1) from £29.1bn to £33.5bn and this is the amount the SRA are working with; it does allow for inflation and is therefore in outturn prices. The future subsidy requirements arising from the rail elements of the Multi-Modal Studies are less well understood than the capital estimates simply because they have not been studied in as much detail and it is often a particularly difficult task to estimate the additional operating costs associated with new services without detailed knowledge of existing rolling stock deployment and diagramming. In appraising these schemes, the planning criteria require the SRA to take account of the need for future subsidy, where this is necessary, so that the SRA gets the total picture when reviewing a scheme's possible benefits.

  2.   Re Q136  Briefly summarise the SRA's current programme of regional liaison/interaction and indicate how this may change. Include a summary of the Capacity Utilisation Policy and explain to what extent this will affect the multi-modal studies. Expand on how much capacity might be made available and how decisions will be made about the outcomes of the multi-modal studies which will compete with other services requiring greater frequency?

  In preparation for the update of the SRA's Strategic Plan (to be published in January 2003), workshops were held in each of the English planning regions, Scotland, Wales and London and were attended by senior SRA staff. A particular focus of these workshops this year was on ways in which the SRA could improve interaction and liaison with regional planning initiatives. The SRA recognises that it has not in the past given this area the attention it deserves, and intends to create a team to achieve the necessary integration of national, regional and local plans for the railways.

SUMMARY OF CAPACITY UTILISATION POLICY

1.   Introduction

  1.1  On 5 September 2002 the SRA published a consultation document on its proposed Capacity Utilisation Policy. The closing date for responses is Friday 29 November 2002.

2.   Aims of Capacity Utilisation Policy

  2.1  The aims of the Capacity Utilisation Policy as set out in the consultation document are:

—  to lead the rail industry in a process to find the best use that can be made of existing network capacity;

—  to formulate strategies for growth and development in clear terms, based on application of this process, for use by key industry players including the Rail Regulator;

—  to help identify where enhancement investment in the network and its use is needed; and

—  to help determine the best use of any funds for capacity improvements in the network.

3.   Capacity Utilisation Policy structure and issues

  3.1  The SRA's proposed Capacity Utilisation Policy comprises a Statement of Principles to be published in December 2002 and a set of linked strategies that the SRA is developing which it will fo1low to achieve its objectives and the aims of the policy.

  3.2  The structure and components of the Capacity Utilisation Policy are set out in Figure 1 below:

  Figure 1: Capacity Utilisation Policy

  3.3  The first version of the National Network Utilisation Strategy is being produced, for publication in 2003, and it will contain:

—  a statement of the capacity required for long distance passenger and freight trains (the Long Distance Statement);

—  a statement of the planned development of the network; and

—  the methodology for developing a series of supporting Route Utilisation Strategies.

   3.4  The SRA has been set a number of objectives in its Directions & Guidance. The Capacity Utilisation Policy will contribute towards these objectives by:

—  setting a clear direction and priorities for the railway which will provide the framework within which franchises will deliver services and which the Regulator will take into account when approving or determining track access applications;

—  making use of existing capacity to allow more seats and freight tonne-kms to be provided in areas of high demand (hence delivering on the passenger and freight growth targets); and

—  ensuring that there are substantial and long lasting improvements in performance by making more effective use of the network whilst ensuring adequate access for engineering purposes and taking into account the performance implications of changes.

4.   Capacity Utilisation Policy and Multi-modal studies

  4.1  The SRA is adopting a holistic approach to the consideration of capacity utilisation issues on the network. Relevant multi-modal studies will be used as inputs to the development of scenarios for individual Route Utilisation Strategies. Other inputs will include the Statement of Principles, the Long Distance Statement and Regional Plans. These scenarios will then be subject to a full modelling and appraisal process which will assess the contribution of and impact on local services, long distance freight services and long distance passenger services. The appraisal will cover impacts upon passengers, individual operators, the whole railway, the road network, government and the environment in terms of:

—  revenue and cost impact by passenger and freight operator

—  revenue impact on whole network

—  road congestion/decongestion impacts

—  analysis of geographic impact

—  crowding and journey time impacts

—  network performance impacts

This will allow trade-offs to be made and a utilisation strategy developed for each route.

  4.2  The SRA envisages that Route Utilisation Strategies will be used:

—  By Railtrack when considering timetable bids from train operators and to provide support for any capacity analysis and capacity plans required under EC 2001/14;

—  By train operators when constructing timetable bids-it is proposed that an obligation will be put in the franchise agreement on TOCs to cooperate with the development of Route Utilisation Strategies. There will also be a requirement for train operators to exercise their rights under track access agreements and bid in the timetable development process in a way which is consistent with the application of the Capacity Utilisation Policy;

—  By the Rail Regulator when considering track access applications; and

—  As inputs to new multi-modal studies and regional and local transport plans.

  3.  Provide a list with details of the current status of all multi-modal schemes that have been remitted to the SRA by the Secretary of State from SEMMMS and Access to Hastings.

ACCESS TO HASTINGS RAIL RECOMMENDATIONS

Bexhill-Ore metro

  SRA's consultants conducted an economic appraisal of the case for Bexhill-Ore metro services. They reviewed the impact of two options: an extension of existing services to provide 4 trains per hour and a dedicated metro service. However the study concluded that the services are expected to generate little additional passenger demand and that costs would greatly exceed benefits.

  The work did not fully include the impact of regeneration benefits, but these would need to be very large for the services to deliver value for money. SEEDA are currently doing further work on the regeneration impacts of the schemes.

  SRA also explored options for extending to Ore services which currently terminate at Hastings. At present the economic case is very poor and there are operational problems related to the facilities and security at Ore station. Redevelopment of the Ore area in line with the local authority's aspirations would help to improve the case for extending services to Ore and SRA has agreed to examine the case again when the redevelopment has taken place.

London—Hastings service (Tonbridge-Wadhurst)

  SRA's view was that service enhancements between Hastings and Tunbridge Wells would be a better route to delivering an enhanced London-Hastings service. A study was commissioned which indicated that a business case existed for providing additional peak services on this route. One additional peak service was introduced September 2002, and assessments are being made for a second. SRA is discussing this with Connex, the franchise operator, but no commitment has yet been made to fund additional services.

Glyne Gap Station

  SRA has discussed the proposal for Glyne Gap station with East Sussex County Council. An expression of interest has been submitted through the RPP scheme and a formal bid is expected. The project would be appraised by SRA against the standard RPP criteria.

Ashford-Hastings increased capacity and quality

  The proposed electrification is not being taken forward because of poor value for money. However, the existing rolling stock will be replaced by modern air-conditioned diesel stock by the end of 2004. Indeed all services to Hastings are expected to have new air-conditioned rolling stock by that date.

  Capacity enhancements between Ashford and Hastings will be reviewed in the SRA's Eastern Coastway study which is due to start in 2003. It will take into account CTRL services and the expected growth of Ashford. A number of options including partial track dualling will be looked at as part of that study.

SEMMMS RAIL RECOMMENDATIONS

Links to Manchester Airport

  A study is planned to consider the business case for links to Manchester Airport. This will be managed by the SRA and Manchester International Airport and the North West Development Agency and will include a wider stakeholder reference group. The study would look at both Western and Eastern links.

Stockport-Stalybridge Reintroduction

  SRA has agreed to look at the case for reintroducing Stockport-Stalybridge services, which have operated at the current level since the Trans Pennine services were diverted from Victoria to Piccadilly several years ago. Outstanding issues are value for money and a possible adverse effect on capacity at Stalybridge and between Heaton Norris Junction and Stockport as both of these routes are already congested. To date the PTE has not chosen to specify a reintroduction of the service.

Short and medium term improvements

  Heavy rail, light rail and bus all serve the local need in the Manchester area. Metrolink (light rail) has been very successful in building up a market base that is already bigger than the whole of the rest of the Manchester heavy rail suburban network together. There clearly remains a role for heavy rail in some corridors, and the SRA has recognised this through the recent package of improvements with First North West, including station rebuilding at Burnley Central and refurbishment at Chorley.

RPP schemes

  There are a number of RPP schemes in Manchester and the North West. These include:

  4.   Re Q119  The South East Regional Assembly has submitted in its evidence to the Committee that "changes to the rail elements of the approved package for Access to Hastings, elements that had been incorporated into the SRA's Strategic Plan were not discussed with the Regional Assembly prior to the announcement. Confirm whether or not this is the case and how the SRA intends to liaise subsequent to the schemes being remitted to the SRA.

  The Strategic Plan included commitments to electrification and a review of track doubling— all consistent with the Access to Hastings Study. The plan was being put together at the same time that the Access Study was published.

  During the course of 2002, while negotiations on the South Central franchise were continuing, further work indicated that electrification would not represent value for money and that diesels would be required to meet the Mark I replacement timescale. The SRA communicated this to SEERA and produced a policy paper in July 2002 which was used to communicate the details to regional and local authorities and the Rail Passengers Committee.

  5.  Provide an update on the current position of the SRA regarding the Manchester and West Midlands Capacity Study findings, with estimates and costs (if available) and the current estimated timetable for the improvements.

  A number of schemes from the Greater Manchester study were included in SP1—for example, improved Trans Pennine services and Manchester Airport services.

  The SRA is currently pursuing the next stage of development work on Greater Manchester capacity with Greater Manchester PTE and expects shortly to agree a remit for further work on local service provision. This will be in line with the SRA approach to capacity utilisation and is also informed by the changes to timetables in the North West that occur with SRA re-specification of the West Coast project. We are also now in final negotiations with bidders for the Trans Pennine franchise and hope to finalise these in the New Year to confirm this part of the complex picture of services around Manchester. The SRA will also be examining links to Manchester Airport jointly with the North West Development Agency and Manchester International Airport. It is premature to estimate costs at this stage, and a range of options including re-timetabling, rolling stock re"diagramming, and some possible infrastructure proposals will be considered. This will be detailed development and planning work and is likely to continue for some months. It will inform SRA considerations for a Northern franchise.

  During 2001-02 Railtrack investigated the short-term proposals that emerged from the West Midlands Capacity Study. Theses schemes where developed in greater detail, up to Level 2 in Railtrack's five-stage development matrix. They include:

—  the re-opening to freight traffic of the currently mothballed route between Round Oak and Walsall,

—  provision of additional tracks on the Water Orton and Leamington corridors,

—  a new chord linking the Jewellery and Soho to Perry Barr lines,

—  improvements to existing signalling and a number of platform extensions.

  In addition, proposals to improve passenger circulation at both platform and concourse level at Birmingham New Street station are being developed. Railtrack (25%) and SRA (75%) are jointly funding this work.

  Where appropriate, advantage will be taken of implementing the proposed enhancements at the same time as carrying out Railtrack's planned signal renewals in the West Midlands. This will minimise disruption to the operational railway.

  Railtrack reported their findings to SRA in May 2002. Each of the work packages had been assessed for feasibility and the cost estimated. The total cost, including Birmingham New Street station, amounted to around £625m at Railtrack's Level 2 status.

  After considering the viability of the individual proposals, SRA authorised continued development of some work packages. Reports are due next Spring when SRA will again review their business viability and affordability.

  The possible new chord between the Jewellery and Perry Barr lines, to allow trains from Walsall to use Snow Hill station, thus reducing use of New Street, does not currently represent value for money. In addition, to overcome the very tight physical constraints and prevailing topography meant that the alignment of the proposed new railway would be at the extremes of permissible standards. Further work will be required to assess whether an alternative scheme can be identified fullfiling the same objectives with lower costs or higher benefits.

  Insofar as the longer term proposals for the Coventry to Wolverhampton corridor are concerned, SRA are to join forces with the West Midlands business community and fund a detailed study of all transport requirements in this area.

November 2002