How the Railways Bill can get the best value from the supply sector Contents 1. Summary 2. Introduction 3. Context – 10 key aspects of the Railways Bill 4. Opportunities 5. Recommendations Annex: key Railways Bill passages 1. Summary This more detailed briefing should be read in conjunction with our high level summary The Railways Bill: 10 key points from the supply chain. As the Railways Bill progresses through Parliament, the Railway Industry Association (RIA) has assessed how the proposals can help get the best value from the rail supply sector, which will account for over half of Great British Railway’s spending. This paper sets out that: •
RIA welcomes the requirement to publish a Long Term Rail Strategy. Clarity on long term plans is needed to support business investment confidence and RIA has long called for a clear long term strategy.
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RIA welcomes the ability for GBR to take integrated decisions across track and train. We strongly support the requirement for GBR to produce comprehensive Business Plans covering the full range of its activities.
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The proposal to create GBR out of Network Rail is appropriate to support a smooth transition; but it needs strong leadership to ensure there is a new business-friendly culture of working in the railways.
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RIA is concerned that the long-established principle of 5 year infrastructure funding settlements for rail is proposed to change so that the Secretary of State for Transport can remove funding at any point without consultation, and potentially without transparency over the consequences. This could undermine efficiency and pose risks to future performance and asset sustainability. Therefore, RIA is asking for targeted amendments to the legislation: (1) To ensure 5 year funding settlements are maintained, with equivalent stability to today’s regime; and (2) If a Transport Secretary seeks to reduce funding a settlement period, to require consultation and transparency, tasking the Office of Rail and Road (ORR) to independently assess and report on the reduction’s impact on railway costs, performance and safety.
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To help establish GBR as a streamlined and innovative organisation, RIA asks that the GBR operating model and licence should be subject to collaboration and consultation with supply chain partners.
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GBR should be established to attract inward investment and make the UK railway easy to do business with. It needs to be a commercially-empowered arm’s length body. RIA recommends that the Government amends legislation to define the Secretary of State’s powers to intervene in non-GBR railway networks much more narrowly. These provisions should be tested with Third Party investors to check they will not deter future investment in the railway.
Further details are set out below.
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