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The Great Transport Debate The Rail Network Michael Roberts Chief Executive, ATOC.

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1 The Great Transport Debate The Rail Network Michael Roberts Chief Executive, ATOC

2 <1% of total public spend - but eg 55% of UK population use trains Part of daily life (eg more stations than Tesco or McDonalds outlets) - but also long term sector Broad high-level Westminster consensus on high speed rail Rail should be a national priority, not a political football Rail and politics

3 Rail and public/private sectors Government sets high-level goals eg HLOS 5-year funding periods for NR and others (eg CP4 to 2014) Franchising (c 20 operators) sets service requirements A partnership which has evolved and delivered – but which can be built on

4 CapacityCustomers CostCarbon Rail and the four C’s

5 Capacity £4.5bn in rolling stock & key schemes eg WCML upgrade CP4 = trains, stations, bottlenecks Passengers at post-WW2 high - yet demand to double in 30 yrs Customers 83% satisfaction & over 90% punctuality – a record Value for money remains challenging Other areas eg stations, information, integration Capacity & Customers

6 Cost By 2014: NR efficiency goal of 21% & half of franchises to pay premia Major projects – big part & challenge of CP4 Taxpayer funding @ 50% instead of 25% Carbon Rail emissions only 0.5% UK total (and down 25%) But no room for complacency eg greener cars Modal shift and eg electrification key to its contribution Cost & Carbon

7 The way forward Honour commitments on rail investment Reinvigorate public private partnership in rail Plan ahead for next 30 years

8 Projects help economic agenda – long term benefits eg Crossrail Schemes to 2014 (eg trains + network + stations) work as package to improve services Major programme but modest impact – eg only addresses 60% of total rise in demand Unwinding franchise agreements/regulatory settlement would be difficult and bad for UK plc Way forward 1: Commitments

9 Government to focus on setting and funding high- level goals (eg HLOS, SOFA) Longer & smarter franchises which enable TOCs to  focus more on quality  innovate in providing outputs  deliver better VfM Joint Network Rail-TOC incentives to drive efficiency Continued primary ORR role in promoting more customer-focused Network Rail Way forward 2: Partnership

10 Way forward 3: Plan Work with industry to set CP5 decisions in 30 year context Clarify key rail outcomes eg more emphasis on cost-efficiency Set fresh challenges eg where next on performance Develop joined-up strategy – new lines, electrification, rolling stock, stations, other modes

11 ‘First Friday’ decisions Adopt smart approach to next franchises Resolve key projects eg rolling stock strategy Flesh out high speed strategy – route, phasing, wider network, funding Press ahead with review of industry cost Set out strategy on funding and fares policy Gear up to HLOS 2

12 Summary Rail (and transport) needs to be a political priority – and area for consensus 4Cs – capacity, customers, cost, carbon – remain the main rail policy and delivery challenges Getting the best of public and private sectors is key to rail success

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