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![]() Railhub Archive | ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Department of TransportSir George Young announces transport spending plans
expenditure settlement for his Department. Speaking after the Chancellor's Budget statement, Sir George Young said: "This settlement is consistent with the transport strategy I set out in this year's Green Paper Transport: The Way Forward. It will allow me to continue to promote a shift towards public transport, while recognising the need to maintain a sensible and balanced roads programme. The settlement maintains expenditure next year on all my main programmes at least at the level assumed in last year's plans and, with the addition of substantial private sector finance, will allow continued investment to improve and expand our transport infrastructure." Key points in the settlement include: * a commitment to take forward a programme of new construction on national roads worth #6 billion, at the same time withdrawing from the programme longer term schemes which had little prospect of being built, in order to remove planning blight and uncertainty. Progress with the Department's Design, Build, Finance and Operate (DBFO) programme under the Private Finance Initiative will be maintained; * funding for railways next year reflects the consequences of substantially completing the sales programme. The benefits of franchising are now coming through: these will be seen in substantial savings during the PES period and beyond, coupled with service levels guaranteed, fares capped in real terms and major investment programmes for infrastructure and rolling stock; * grant for LT protected next year, with investment in the existing network of around #1.5 billion expected over the 3 year period, on top of completing the Jubilee Line Extension; * local transport funding maintained at the planned level next year, taking into account the Department's contribution towards Capital Challenge; * public funding for transport supplemented by over #3.5 billion of private finance over the 3 year period. The broad allocation of transport expenditure is as follows: Railways The privatisation process is now well advanced and bearing fruit. Provision next year is a consequence of the successful sale of profitable businesses. Savings start coming through over the three-year settlement period - the start of a longer term trend which will see subsidies fall dramatically to well below pre-privatisation levels. Over time, subsidy for the first 13 passenger franchises will be at less than one third of the grant British Rail needed last year to run the same services. In addition, with Railtrack in the lead, the privatised companies will be investing significant sums in the future of the new railway in the years to come. London Grant for London Transport next year will be maintained broadly at the planned level. Grant tapers off in the later years, reflecting the planned completion of the Jubilee Line Extension towards the end of the period. LT is expected to make further progress in improving efficiencies and revenues. In addition to the JLE, the settlement should allow total investment in the existing tube network of around #1.5 billion over the next three years, including projects taken forward under the Private Finance Initiative. New privately financed trains will start to enter service on the Northern Line next year, and further PFI projects are well under way. Over the next 3 years, investment will average 50% above the level of the 1980s. In addition, Government support will continue to be available towards other transport investment benefiting London, such as the Channel Tunnel Rail Link, Thameslink 2000 and the Docklands Light Railway extension. Funding for red routes will be maintained over the period to enable the Traffic Director to meet his objective of having the red route network operational London-wide by the year 2000. National roads programme The settlement provides for an average spend of #1.5 billion a year on the national roads network. This will enable a substantial programme of new construction worth #6 billion to be sustained. The Government's policy is to make steady progress in implementing a roads programme the size of the current main programme. This is likely to mean an average of 3 to 4 significant new starts a year. The Department is on course to sign up a further three DBFO contracts (including up to 20 schemes worth approximately #350m) in 1997/98 and more thereafter. The final two Hackney-M11 contracts were signed on 14 November, in time to provide access to the Millennium Exhibition site, and the contract for the last section of the M66 Manchester Outer Ring Road will be let in 1998. Provision for maintenance will be sufficient to safeguard roads infrastructure for the future. Blight and uncertainty will be removed by withdrawing most of the schemes in the longer term programme. (Details given in separate Press Notice). Local transport Allocations for local transport will be announced before Christmas. Local authority transport projects are now open to private finance treatment following changes to capital finance regulations earlier this year. Over #1.8 billion will be provided to support local transport over the PES period, on top of the resources available to local authorities under Capital Challenge and the Private Finance Initiative. Aviation Reduced funding for the Civil Aviation Authority reflects the anticipated proceeds from the disposal of some Air Traffic Control equipment and property at BAA's airports. The Government is committed to privatising the National Air Traffic Services and intends to bring forward legislation to do so early in the new Parliament. Private Finance The Department forecasts investment of over #3.5 billion by the private sector over the 3 year period to 1999/2000 on transport projects under the Private Finance Initiative, including the Channel Tunnel Rail Link, Heathrow Express, Northern Line trains, Birmingham Northern Relief Road and Design, Build, Finance and Operate (DBFO) schemes for roads. Administrative costs The Department's running costs will decrease from #376 million in the current year to #346 million in 1999/2000 as a result of reduced staffing, improved efficiency and in some cases reduced workloads. Additional money has been allocated under the Governments "spend to save" initiative to introduce a national wheelclamping scheme to combat evasion of Vehicle Excise Duty. NOTES TO EDITORS 1. The Department's expenditure covers: * external finance for the transport nationalised industries * support for local authority capital programmes through grants and credit approvals * instruction and maintenance of motorways and other trunk roads in England * a variety of regulatory and other functions such as licensing of motor vehicles, the Coastguard and Marine Safety Agencies, safety publicity and international transport contributions. 2. The attached Table gives a broad breakdown of the Department's planned expenditure. Full details will be published in the Transport Report next March. Expenditure figures in the text of the Press Notice are in cash terms. 3. There are separate Press Notices on the detailed implications for the national roads programme, and on the "spend to save" initiative to tackle VED evasion. # = pounds sterling
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