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1996-03-25 DoT-001
Department of Transport


Transport report gives spending for the next three years

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Department of Transport

Transport report gives spending for the next three years

25 March 1996
source Department of Transport
type Press release

note 84

The Transport Report 1996, published today, gives details of the
Governments planned transport expenditure of around #13 billion over
the next three years - 1996-97 to 1998-99 - announced in the Budget
last November.

In his foreword to this years report, the Secretary of State, Sir
George Young, sets out his principal aims:

- to promote an efficient market, with prices reflecting the true
costs of transport;

- to enable the market to provide greater choice by substantially
increasing opportunities for private sector involvement;

- to assist economic growth and to provide greater choice in good
quality, safe and accessible services for all transport users.

His objectives and priorities for the coming year are:

I. to reduce the adverse impact of transport on the environment;

II. to promote UK transport policies and interests

III. to continue rail and ports privatisation;

IV. to promote more efficient, effective and responsive use of
Departmental resources;

V. to conduct licensing, regulatory and grant-payment services
effectively and economically, maintaining a high quality of
service to industry and the general public.

In pursuit of these objectives, the Department has the following
plans for the next three years.

National railways and London Transport

Top priority for this year was to protect funding for public
transport, including national railways and London Transport.
Government estimates of the funding requirement of the restructured
railway are given in the Report. The Government will continue to
provide sufficient funding to maintain BR services and to support
franchised services. As last year, the reports of the Office of
Passenger Rail Franchising (OPRAF) and of the Rail Regulator (ORR),
separate Departments established under the Railways Act 1993, are
incorporated. Public funding for London Transport over the next three
years is expected to be just over #2 billion, which will allow LT to
invest some #2.5 billion, taking into account revenue from fares and
other internally generated resources. This includes funding to allow
for the completion of the Jubilee Line Extension to Docklands.

National roads

A total of #4.5 billion (including current and capital expenditure)
is planned to be spent on national roads over the next three years.
The roads programme stands to benefit from over #1 billion of
privately funded Design, Build, Finance and Operate (DBFO) schemes.
A thorough review of the roads programme, taking into account a
reassessment of what is both publicly acceptable and affordable, has
led to a reduction on last year's plans.

Local authority transport

Over the next three years, #2.3 billion has been allocated in support
of local authority expenditure on transport. Within the overall
settlement for local authorities in England, resources for investment
in bus priority, park and ride, cycling and pedestrian measures have
increased by 23 per cent on last years figures. The number of
packages accepted for funding in the coming year has increased from
37 to 53.Aviation and Shipping

The Civil Aviation Authority will be making a net contribution to the
National Loans Fund, repaying previous Government loans. CAA will
recover VAT on most of its activities under new arrangements
introduced in May last year, offsetting the net reductions in public
funding from previous plans. Funding for COASTGUARD and the Marine
Safety Agency remains at around the levels planned last year.

Private Finance Initiative

The Department will continue to look for ways of increasing the role
of the private sector in transport provision. Over the next three
years, public funding for transport will be supplemented by around
#3.5 billion of private sector investment. In total, 37 road
projects are expected to be delivered through DBFO. The successful
bidder has been announced to design, build and operate the Channel
Tunnel Rail Link with a capital cost of about #3 billion. London
Transport are in discussion with the private sector on potential
schemes for power supply, electronic ticketing and revenue collection
and communications. CAA are on course to let the contract for the
privately funded New Scottish Centre for Air Traffic Control later
this year.

Administrative costs

The Report gives details of the Departments administrative costs and
staff numbers including its eight Executive Agencies. Total staff
numbers have been further reduced over the past year by around 930,
ensuring that the Departmental efficiency target set in 1994 has been
fully met. Notes to Editors

1. "Transport Report 1996: The Government's Expenditure Plans for
Transport 1996-97 to 1998-99" (Cm 3206) is available from HMSO, price
#13.10. The Report brings together information about transport
policies and Government spending on transport, including the
nationalised industries. 2. This Report gives more detailed
information about expenditure set out in the Supply Estimates, to be
published on Tuesday 26 March, which are the Parliamentary documents
which authorise the spending of money in the coming year. This year,
the Supply Estimates have been simplified and the Report written to
facilitate read-across between the two documents.

3. Information on expenditure on roads and transport in Scotland
and Wales is contained in reports of the Scottish and Welsh Office

4. The main figures for Government spending in 1996-97 and the
following two years were announced in the Chancellors Financial
Statement and Budget Report ( 28 November 1995, HC No.30 - DOT Press
Notice 380). The Transport Report gives more detail and background
on the underlying spending decisions.

5. The local transport settlement was announced on 19 December 1995
(DOT Press Notice 433).

6. The Transport Report is part of a series (Cm 3202 to 3220)
which, accompanied by the document Public Expenditure: Statistical
Analyses (Cm 3201) present the Governments expenditure plans for
1996-97 to 1998-99.

# = pounds sterling

Railhub Archive ::: 1996-03-25 DoT-001


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