DEPARTMENT FOR
TRANSPORT News Release (022) issued by COI News Distribution
Service. 5 February 2009
Passengers in many
parts country could benefit from a new approach to Government
funding of new local and regional train services Transport
Secretary Geoff Hoon announced today
The Department for Transport could take over long-term financial
support for new or enhanced rail services that are promoted
successfully by local authorities and Passenger Transport Authorities.
Many local authorities have found it difficult to take forward
improved services because of the potentially high running costs
involved. Under this new approach, after a successful trial
period, local authorities could ask the DfT to consider supporting
the services through a franchise agreement.
For example, Blackburn and Darwen councils would like to get a
new off-peak Blackburn to Manchester service running for
passengers every half hour, under a proposal being developed with
Network Rail and Northern Rail. Other initiatives which
authorities are looking at include a new service between Burnley
and Manchester and improved services in the Tees Valley. If
services, like these, prove successful they could be funded
through franchise agreements.
To benefit from the new arrangements, the new or enhanced service
would have to have been run successfully for the first three years
and show good value for money.
The Government could then decide to take on long term financial
responsibility for these successful services, easing the burden on
local authorities and ensuring the continued operation of a
service which is benefiting passengers.
Transport Secretary Geoff Hoon said:
"This new approach could bring real benefits for passengers
by encouraging local authorities and train companies to work
together to introduce new or improved services.
"The availability of funding should provide the
encouragement local authorities are looking for if they believe
there's a sound case based on passenger demand for improving
a service or bringing in a new one. "
To take advantage of the new scheme local authorities must first
identify the best way of meeting a local transport need. If a
train service offers the best solution and has support from the
rail industry, the local authority must then show that the rail
scheme has a business case, secure the necessary start-up capital
funding, (through sources such as the Regional Funding
Allocation), and commit to funding the service for at least three years.
If successful the new service could then be included within a
franchise agreement, guaranteeing its future operation. Services
which have proved successful could get funding from April 2014,
from a budget set in 2012.
Notes to editors:
1. Initiatives might include new or
improved services during weekends or late at night, or more
frequent off-peak services in rural or semi-rural areas.
2. Existing services are funded through a franchise between the
Government and train operators.
3. Conditions related to the funding of new or enhanced train
services from April 2014 can be found here http://www.dft.gov.uk/pgr/rail/strategyfinance/revisedpolicyfunding
4. Interested parties should contact the Department for Transport
for more information.
Public Enquiries: 020 7944 8300
Department for Transport
Website: http://www.dft.gov.uk