APPENDIX 12
Memorandum submitted by CTC
The CTC has since 1878 provided a voice for
cyclists in shaping transport policy and provision, and today
represents some 70,000 members and affiliates mostly based in
the UK. The use of the bicycle as transport, and its value as
a complementary mode to public transport are key areas in which
CTC and its members press for recognition and implementation of
policy and projects.
What should be the purpose of passenger rail franchising?
The experience of the recently tendered franchises
is that they are very negative in their position with regard to
growing and developing rail services, and focus in many cases
in retrenchment and minimum price options. This often hits our
members as the awarded franchises tend to move away from flexibility
and versatility which rail offers and the desirability of a system
which can handle both commuter, business and leisure travel.
How well does the process for awarding franchises
work?
The experience here, in theory has been one
of improving prospects.
What input do operators, passengers and other
interested parties have into the design of franchised services?
With established franchises there is a huge
variation in management style. CTC has found the ability to talk
to franchises like SWTrains (Stagecoach) has provided a valuable
input to design of refurbished trains, and development of cycle
policy. GNER, Northern Rail, Scotrail and Merseyrail have all
been good at delivering, and reacting to our concerns. Notable
for their diktat style and reputation for not wanting to talk
or listen are the Govia companies, Southern, and South Eastern
(and formerly Thameslink).
Has there been a smooth transition of franchising
arrangements from the Strategic Rail Authority to the Department
for Transport?
Both smooth and if anything an improved presentation
and handling of the invitation to comment.
Are franchise contracts the right size, type and
length?
No, the long franchise for Chiltern shows just
what stability can do, but the option for break-points in a long
franchise has not been fully exploited. We believe that a long
franchise with significant review of progress and the opportunity
to have the incumbent in a preferred position to submit a bid
to run-on for five or 10 year segments, rather than have the hiatus
of a complete shut down and restart, which effectively stops all
projects and investment in the run-up to the refranchising. The
incumbent would submit their prospectus, and DfT their aspirations
for the next period say 18 months ahead of the end of the current
agreement, and if this delivers appropriately, the franchise would
be extended, if not, bids would be invited to take-over the franchise,
and the incumbent invited to sharpen their pencils.
Do franchise holders deliver value for money to
passengers and the Government throughout the duration of their
contracts?
No, most notably from the reports of cyclists
refused travel on almost empty trains when Southern management
went for a rigorous curfew on cycles on the London-Brighton line
for six hours per day. CTC and affiliated groups were astounded
that Southern were driving away regular commuters (in some cases
making it almost impossible to carry on working and commuting
by rail) with an average annual payment of £2,300 per cyclist,
all when the company received over £71 million to run the
services (ie government subsidy used to run empty trains whilst
potential users were being refused access).
Are risks suitably apportioned between the Government
and franchise holders?
We cannot comment in detail, but the arguments
by franchisees against investment to deliver effective cycle-rail
integration suggests that the long term investment and related
risks are not being addressed effectively by the current arrangements.
What is the scope for improving services through
franchise agreements?
This is the way to improve services, as effectively
it is the agreement the Government has with the franchisees to
deliver the rail service. However, the ability of a franchisee
to exploit a new market or work outside the basic service specified
by the franchise seems to be too severely constrained.
Do we need more competition and vertical integration?
The SRA Rolling Stock Consultation allowed us
to suggest that there could be no reason that the three Rolling
Stock Companies have the exclusive rights to supply the operators
with trains, and operators should be able to buy trains, plus
mini RoSCos and leasing from EU-based companies should be possible,
so that specialist vehicles can be provided, and a genuinely competitive
supply sourced should be able to exist with the ability to provide
specialist trains for special traffic.
Is franchising compatible with open access operations?
It would be very useful to have choice, and
the ability to run a special service for a special event or traffic
is seriously limited by the control which the regulator and principal
operator can exerciseexamples could include running a special
service to get cyclists away home from Brighton after the annual
BHF cycle ride, where the principal operator dictates no bikes
on any trains (even if other operators can offer this).
The extreme in the other direction is to guard
against contra is predatory operations, and the bus industry has
the position of not registering services which directly compete.
In this way an operator who does not deliver to a market, by shortening
trains and pricing out or otherwise driving away custom, may find
another operator able to move in and offer a better service for
that specific market.
Should train, rolling stock and track operation
be more closely integrated?
There is certainly a need for this. The limitation
on a train operator modifying the layout of trains to suit the
actual needs of their customers is constrained by the need to
hand the trains back in a specified condition, and the near cartel
conditions relating to the leasing of rolling stock.
Some services are curtailed or otherwise dictated
(ie short trains to save on access charges) by the way the market
is organised at present. Additional vehicles/space for carrying
bikes and luggage on a train carries a greater penalty than the
small cost of hauling an extra coach making the decisions on running
trains with greater flexibility in the ability to carry a variety
of traffic and widely varying numbers on commuter lines (especially
in SE England) a per train charge might be more appropriate. It
is pointed out that by vehicle count (64 per night of which 32
do not call to set down passengers) Scotrail incur charges similar
to the local train operator at Preston Station, as the latter
only use one and two-coach DMU's.
8 July 2006
|