LIAISON COMMITTEE PAPER ON TRANSPORT


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LIAISON

COMMITTEE

PAPER

ON TRANSPORT

Page

Contents A.

FactorsAffectingPublicPerception

1- A Changing Market EnvironmentalProblems InternationalComparisons PublicPerceptions-thePolls Conservative Perceptionof B.

The Government'sPolicy

C.

The Government's

Government's

Policy

9-10

Record

and Efficiency Deregulation New Services Privatisation on Subsidies Spending Curbing WastefulPublic The Railways Infrastructure in Transport Investment Road Safety and Law Enforcement Protection Environmental D.

Common

Annex:

Transport

0

10-11 11-13 13-14 14-15 15-17 17-18 18-19 19 20-33

Misconceptions

Public

1-2 2 2-3 3-8 8-9

in Scotland

1 -

-

Factors

1.

A Changing

Market

coloured

strongly

and the price

money

Overall, opportunities

mileage

than

more

for travel

which

since

more

than

led

general fare

rose

price

has affected

rose

services,

in tne ccst cent

by just

transport

transport

cases

fallen

by

and travel

cent

500 per

of transport standards,

declining

and

1981,

cent).

stage

while

Of course,

to and

as the many

from

work.

carriage

the retail

of transport7especially as well

beyond

trahsport

(The average

f living. 1960

modes

of public

price

to a car,

has

period.

in many

perceptions

access for

over

by

650 per

by over

by 75 per

for traditional

between

problems. in travel

been

mileage

by bicycle same

welcome

increased

has

by

increased

this

of course

has

passenger

rl-ies in

people's

whc do not havz public

and

by 900 per

index

the

in the market

to shrinking

increases

travel over

by 9 per cent

under—investment

bus

However,

has

corresponding

without

place

Passenger

of transport.

forms

However,

1950.

in travel

50 per cent,

The decline had

since

by the

possible

made

in Britain

Car passenger-mileage

1950.

been

of different

taken

expansion

car.

cent

have

increased

the

from

greatly

benefited

of transport

forms

has not

The greatest

by rail

have

150 per cent

development

private

individuals

on all

for that

get

they

service.

of that

of a variety

development

are

perceptions

of service

by the standard

15 per

(some

budget

People's

per week).

or £18.70

in 1981,

cent

for a

and accounts

family

of the average

proportion

significant

lives

of everyone's

part

is an essential

transport

mechanised

because

an opinion,

has

everybody

which

It is a subject

issue.

political

charged

is a highly

Transport upon

tion

erce

oublic

affectin

A.

POLICY

TRANSPORT

GOVERNMENT'S

THE

who

this those rely

As public

on

- 2 transport

is as often

regulated, itself

some

as not publicly

of the blame

to Government.

about

The benefits

by car ownership

policy,

except

strategic

from

the problems

in travel

most

it noise, - law

by road

inevitably

attaches

of increased

obviously

mobility

attributable

brought

to Government

is responsible

people

enforcement.

have

The

been

a matter

them

particularly

of declining has

Because

for

living

ownership

traffic

and problems

in the numbers concern.

frightening

Their

to roads

used

the impact

has

been

bringing

size

and

lorries

and noise

vehicles

regularly

so

with

of safety

of heavy

and disagreeable

next

transport

and unpleasant

in car

increased

congestion

growth

public

a dramatic

the rise

of particular

those

had

noticed

air pollution,

especially

decline

Problems

on the environment. rapid,

publicly

building.

Environmental

increase

are less

or at least

in so far as the Government

road

Apart

for this

owned,

has

makes

for anyone,

by heavy

lorries.

International In the have their

overtaken

example

who

have

the

scale

and

pace

do not compare that

British

of cheap,

clean

travelled

Train

these

with

travelling and

eftic

building

subsidies. Metro,

(TGV),

for

or have

in France

equivalents

and

in Britain

unfavourably.

abroad ent

of massive

fares

Vitesse

their

compares

it is perceived,

on the Paris

Grand

of motorway

transport

tourist

of high

countries

so,

as a result

and as a result

French

European

performance,

improved

can be few who have

The British benefits

or so, as other

in economic

systems

or in the new

observed

and find

two decades

programmes

There

arisons

Britain

transport

investment

Italy

last

Com

experiences

trausport

all

witUout

the

hav ng

r,cj

- 3 pay more

the cost

of subsidy.

resources

is now

should

enshrined

investment, buses.

in Opposition

policies

transport

led to a widespread to transport

Party

policies

widespread

to transport, is not

which

appeal,

and

particularly

confined

feeling

in Britain

that

and this

promise

in the railways, and higher have

of resources

in public

has

be diverted

particularly

These

a switch

This

more

subsidies

for

the clamour

towards

to supporters

for

investment

of Labour

and

the Alliance.

4.

Public

Perce

tions

Two recent on public

- The

opinion

transport. A survey

These

Fair'

findings Level

by the National by RSL,

by ORC

between

of the

July

which

monitored

changes

1980

with

shipping,

health,

e-ducation,

transport

emerged

concern.

However,

survey

found

formally proportion formally and local

that

about

about

that

4elfare,

Public

1982, the

despite very

ort:

(including

and employment transport

general

few people transport

cent)

1982.

Trans

issues

ac one of the most

transport

services.

and June

of all

financial

public

(4 per

(before

to

of Dissatisfaction

housing,

in 198

attitudes

were:

found

in March

into

surveys

The RSL poll

opinion

Consumer

published

conducted

Industries,

in attitude

of public

Scheme).

conducted

Nationalised

evidence

are:

on a survey

'Fares

A survey

i)

provide

and conducted

but based

The main

polls

commissioned

Council

GLC's

Polls

communicationc)

frecuent

sources

dissatisfaction, actually

services.

of people than

and

services,

wanted

about

their

of

the

complained A much

lower

to complain neighbour

coc:

- 4 In general not help

Trans

people

and many

that

complaining

did not

know

who

fares

than

found

about

51 per cent

more

any other

aspect

of coach

in the

50 per

users high.

list

Bus

of charges

and central

oil.

The ORC

heating

survey

suggested

of the RSL

fare

levels

survey)

had

that

rail

from

39 per cent

fares

period.

National

to have

risen

respondents British

The RSL

because More

found

said

cent

than

fare

levels

fares

came

unreasonable electricity

1980

(the

dissatisfaction of people

than

fares

risen

believing

the sample

were

believed

RPI by 35 per cent

had

with

RPI increased

over

The number

12

of people by more

of

beli-eving

than

RPI

to 12 per cent.

Infrecuency that

27 per cent

were

not

that

they

of poor_or

people

between

users

only

telephone),

faster

Company

fares cent

train

1982,

to 45 per Bus

that

The number

risen

faster

9 per

services

and many

had

Airways'

from

and

transport.

of train

considered

that

risen.

in 1982.

Bus Serv-ices:

that

to.

about

of public

users, but

and

(including

complain

cent

consider

after postalservices

rose

to complain

people

of underground

are unreasonably fourth

that

of bus users,

45 per cent

per cent

time

would

ort Fares:

The RSL poll

and

thought

of bus users

frequent could

enough

not make

_totally non-existent

in England

than

in other

for

complained them,

journeys bus services°

parts

of the

CW,

- 5 infrequency.

about

complained

Standards:

Trains:

comfort

standards,

about

complained

and cleanliness. about

trains.

on underground

overcrowding

the train

complained

users

of underground

16 per cent

half

and Managerial'

'Professional

as

classified

users

Nearly

of overcrowding.

complained

trains

and 17 per cent

of comfort

standards

and poor

of dirty

complained

of users

32 per cent

trains,

who used

of the RSL sample

Of the 13 per cent

Air Travel: found

The RSL

that

with

problems

reported

year

in the previous

accepted

generally

to wait

forced

The ORC survey

people

found

felt

who

the terhentages

that

industries

should

12 per

Airways Bus

cent

and was

Company.

and being

increase

in the number

1982

public

transpc,rt, although

that

Over

in the case

to 25 per cent 30 per

cent

the perio,f.,

partioular rose

be partlydenationalied cent

of and

denationalisation

thinking

to 27 per

less

were

etition)

are sti:.1 not high.

of people

from

more

improve

the nmber

11 per cent

and

were

surroundings.

a significant

1980

would

comcetition

Com

and

between

occurred

communications

in inadequate

Denatinnalisation

delays

although

as unavoidable,people poor

to forgive

ready

services

or cancelled

delayed

and

travellers

of air

cent

17 per

from

of BR, and

for British

in 1982

for the National

- 6 A similar

trend

competition that

was

with

there

evident

the percentage

should

be more

11 per cent

to 30 per

from

cent

13 per

British

The ORC

Subsid

found

taxpayer

should

of people money

give

of in

- the highest

cent,

believed

cent

believed

while

than

should

taxpayer

and

be given

half

by 1982

that

17 per cent

made

a profit.

be given

only

the numbers

from

Rail

Only

money

4 to 5 per cent

(57 per

losses

the National

more

the

to ailing

rose

British

it made

that

money

BR should

over

in 1982

Company

agreed

However,

that

that

Performance:

a lot more

by the taxpayer

often

11 per Bus

by the in the case

of

Airways.

Wa es, Service

and

surprisingly

of the Rail

was

unions.

the unions

management

Industrial

in the case

of dissatisfaction

over

Financial

Industries.

more

that

in 1982

Company

from

of BR;

in the case

43 per cent

few people

believing

to 27 per

Not

and

that

Nationalised

British

rising

in the case

Bus

believing

industry.

Government

cent)

and was

of the National

for any

more

competition

cent

to

of people

to 33 per cent

Airways

the case

in attitudes

rose

the period

from and

..tlouidbe stronger

of BR a high

expressed

The

should

Relations:

with

percentage

co-operate

24 per cent 39 per

cent

level

the attitude

believing more

fully

to 59 per believed

resi_,,..Ling wage

with

cent

that

claims.

BR

— 7 Equivalent

figures

lower

although

are

British

Airways

readily

with

the attitude

about

complained

of staff

at a local

level.

The number

of people

Industries

should

feeling

Bus

Confidence

in Manaaement:

Confidence

in management in general

risen

is less

there

Rail

British

Company

33 per

was

not much

cent

rising There

in

since was

Company

1979)

and

1979

a high

but

in the management

of

in any

other

Nationalised

having

quite

a lot

cen:

a

In 1982, stood

when level

(58 per in British

which

percentage

it stood

in 1982,

Airways

from

21

bT:.tpeople

a: 86

has

been

at 51 per cent.

of confidence

cent

or a great rose

in BR management

or no confidence

1982,

Industries

the mid 1970s,

since

tD 31 per

n 1976

cent

having

Buc

than

of confidence

deal

per

The relevant

of Nationalised

confidence

People

Industry.

per

of BR

in the case

rose

in 1982.

cent

has

to manage

freedom

be given

for the National

figure

Nationalised

that

to 33 per cent.

12 per cent

from

emerged

staff

few people

Intervention:

own businesses

the RSL

side,

Very

Government

their

cent

5 per

from

transport

public

unscathed.

relatively

jumped

On the positive

that

found

survey

more

co-operate

should

management

that

believing

the number

Airways

and British

for the NBC

unions

cent.

to 33 per



in the National

30 per cent

(57 per cent

in

in 1982

-

- 3 53 per

cent

is suite

evenly

without

much

different

5.

Perception The

in 1979)

political

would

and

the Government's

attaches

in people's

- _areas where

public

significantly

social

class

of

Polic

there

is a lot of public

to Nationalised

on privatisation

dissatisfaction

has

risen,

minds

perception

different

and

supporters

approach

However,

Industries

itself

that

arguments

of Nationalised

ages

Government

the Government's

through.

Dissatisfaction

parties.

suggest

with

across between

of Conservative

ORC poll

are getting

spread

variation

sympathy that

managements.

and

from

and competition

with

the performance

inevitably

some

to the Government.

of Conservative perception

palicy

of other

Industries

blame

Specific may

be

parties'

policies

arei. -

Polic

Towards

perceptions The polls

Nationalised

redound show

competition

been

something

some

realisation

1980

of the need

competition

Bus

deregulation

in general

do not.

Company.

provisions

in public

for more

of the

that

for the National

of a success

The awareness and more

a striking

Act

some

to our advantage,

is good

The Transport

Industries:

have

perception.

privatisation

has

grown

significantly. The

rising

dissatisfaction

to have

been

Serpell

Report.

Party

helped

has been

network

options

Conservative ft,tther.

seen

Beeching

been

left by the

and Serpell's

interpreted

is to cut

likely

the Conservative

as anti-railways

have

Altrough

ER is not

by the imoresEiion

Since

policy

with

the rail

to mean

that

network

p(,-pic at- uissatt,iLled

wiLh

therefo.re

- 9 they

are not

Heav

anti-railway.

Lorries:

the heavy

lorry

Whatever

the

package,

a large

see the Conservative heavy

lorry

to allow

Trans

as a result

them

committed

to some

of high

the champion most

level

of fares,

people

the Party's

B.

extent

experiment,

to be the

Party

offering

offset

cannot

although

posed

low

dissatisfaction

good,

is now

fares.

with have

as

the

done

the damage

by the unpopularity

of

Polic

The fundamental is that

principle

the users'

of transport.

Transport

the transport

customer.;

aimed

Party

rates.

The Government's

policy

to many

impression

much

of the

determination

Fair'

the Labour

express

image

is to some

'Fares

appeared

while

this

in favour

licensing.

of the traveller,

Since

high

Party

the

of

of people

The Labour

of route

During

fares,

merits

of the Government's

form

the Conservative

number

as being

to run heavier.

ort Fares:

Party

Party

environmental

behind

interests exists With

che Government's

are

paramount

for and would

this

in mind

transport

in the provision

not

exist

without

the Government

has

to: Liberalise to make

them

customer To create new

where more

needs,

both

the

market

efficient

and

the most

services,

transport

possible

to keep

responsive

to changing

possible

and new

for the public

private

generally

conditions enterprise and

the

enormous

growth

of current

for in

for the elderly

and disabled. To contain

services

far-as down.

encouraging

innovation

in transport

operating

- 10 subsidies

and direct

investment

and new

To privatise

support

as far as possible

to new

facilities.

publicly

owned

transport

undertakings

where

possible. To maintain

and as far as possible

in the road network, strategic To help

trunk

transport,

problem

of heavy

To encourage

The Government's

1.

Dere

ulation

the

and

and

designed more his

most

supply

the impact

of

with

industries

the

to become

exports.

.standards

of safety

in transport.

of the consumer

local control

on the belief

of policy

service

from who

from

on the

performance.

to relax

The

to

maintenance.

by dealing

is based

pressure

to maintain

'captive'

road

by improving

to increase

better

efficient

puts

improve

scope

and

emphasis

cheapest

costs

and

given

lorries.

policy

to the needs

This

emphasis

and Efficienc

operator

services.

investment

Record

The Government's to shift

bypasses

the transport

towards

C.

particular

particularly

competitive

To work

tends

roads,

the environment

modern

more

with

increase

can choose a number

providers

of the

the best,

of competing

of the service

is hampered

monopolies,

on costs

competition

the convenience

If a market

or total

that

by regulatioy)

the operator

and forget

to cut

has

the interests

of

customer. Transport

Act 1980

provided

of intercity

coach

services.

legislation,

about

100 new

fares

have

The Civil

fallen Aviation

deregulation

for

total

As a result express

services

deregulation of the have

begun

dramatically. Act

1980

in the Civil

provided

Avia

for a measure

ion Industry

of

by requiring

and

- 11 the Civil

Aviation

airlines

compete

airlines

in providing and to secure

within

the UK.

CAA which policy

and Edinburgh British

The

New

from

32.5

London

British

to Glasgow

Airways

to secure

and

agreement

routes.

of inland

highly

The lorry

package

million

permitted

air

The

services

for

of heavy

as a measure the lorry

in the market However,

efficiency

is estimated

a year

that

competition

competitive.

scope

weight

can be seen

the difference

affect

more

which

it does

and reduced

to be worth

give costs.

about

for industry.

Services

that

system

transport

services

and the rise

cf both

pl:.tical

it is unreall3tic

transport

on the scale is the

a particular

cuts

the withdrawal

parties

to expect of the past.

inevitable

of car ownership.

has been and

licensing

It has

on international

to 38 tonnes with

did not

already

Governments the fact

and is trying

in the maximum

the market

£150

with

to the

explored.

of deregulation, package

of airports

transport

fly from

in competition

deregulation

increase

lorries

was

to

use

other

on international

guidance

for air

for further.deregulation

is being

policy

as administration.

Caledonian,

on greater scope

to give

Midland

with

has

is now responsible

British

British

services

effective

Government

the power

that

as possible

air transport the most

The

as well

allowed

to ensure

as effectively

routes

relinquished

2.

Authority

problem

in rural bus

na,i to recognise

to prop

up cur public

Decline

consequence

The decline

of rural

have

in public

of social

in public

areas.

The

change

transport

'Beeching'

services have left

many

rail areas

.

- 12 without

conventional

recognises transport

that

transport

for many

people

is essential.

This

young

husbands

the car to work.

these

people

transport

people

and voluntary

transport

areas,

do not

some

applies

have

cars

The Government

alternative

the

Government

form

of public

to the elderly

and women

whose

is trying

low cost

forms

to help

of

schemes.

The Transport use of local

in rural

who

by encouraging

However,

particularly

and disabled, take

services.

Act

1980

enabled

authority

when

they

school

local buses

are not being

to school, and abolished

authorities

to make

for conventional

used

restrictions

to take

on car

children

sharing

schemes. The Government,

working

organisations, local cost

has

authorities schemes.

eg. post

buses

conventional being

given

set up;

multiple

fares.

and

buses

school

Act

'Trial

within

Areas' carriage

on this much

basis

effect,

services in Norfolk however,

is working

well

by putting

local

The Transport

with

Act

a Trial

1980

to take

up of

altogether.

Schemes

Area

do not

seem

in Hereford

effecting

out to tender

shifted

encouraged;

restrictions

the council

services

are

licensing

and Devon

the burden

low

to provide

schemes

for the setting

all

cease

and other

used

areas

and

is growing

are being

in some

provided

which

schemes

minibus

schemes

used

1980

to people

are being

voluntary

sharing

The Transport

other

to set up voluntary of these

are being

and

and advice

The number

car

cars

the NCV0

help

working

transport;

and hire

stage

with

cost

on

set up

to have

had

and Worcester savings

on a regular of proof

in

basis,

- 13 stage

carriage

licence

for the licence evidence local

3.

that

stage

applications

to the objector.

this

provision

carriage

the applicant

(However,

has

there

encouraged

many

is little new

services).

Privatisation The

Stated

Government

owned

benefits.

believes

enterprises

It removes

disciplines

imposed

that

privatisation

to the private

companies

by the

from

State

disciplines

of the market

hamstrung

by Treasury

control;

with

their

from

the

prices,

companies

effect and

and

which

more

individuals

of Transport-has

take

place;

them

sector

to buy

of the most

Freight

Corporation

are

no longer

more

closely

Consumers

competition

shares.

one

and

to the more

identify

in them.

of

many

guarantees

managers

can

transfer

- brings

transfers

a stake

are able

perhaps

sector

employees

private

- the

artificial

and

effective

this

from

benefit

has

on

The Department

successful

records

in

area. The National

to its managers successful

company

expectations 27 British property

Britain's The work design

involved

Tra7.sport

in As

in excess

million

business

1982

a highly

in the haulage

are worth

ports,

of industry.

on non-operational

have

and

trunk

to the private about

£20O0

Britizh which

have

Construction

on motorways mainly

:ciatei

DOC1,..3 Board)

profitable

of the Roads

transferred

in February

been

sold

to

sectcr.

most

work

well

£100

Hovercraft

--.ne.sares

the British

profits

over

sold

It is now

a recession

Hotels,

and BR's

half

making

despite Rail

the private Over

and workforce.

was

?orts

;•,:r.s 19 of

been

sold.

Units

which

roads,

has

sector.

million.

(f:rmerly

do the been

Road

schemes

- 14 Long

leases

Service Legislation

have

been

sold

two of the Motorway

Areas.

is on the Statute

Introduction Company's

book

of private

of the work

Stations

to the private

of other

to enable

capital

express, holiday

Transfer

Sale

on all but

into

the National

and property

of the Heavy

parts

the: Bus

businesses.

Goods

Vehicle

Testing

and more

property

sector.

of BR - eg Sealink

sales. The sale The

of British

scope

into and

for

Curbin

the introduction

the operations

Scottish

Wasteful

Public

of private

of the British

for the privatisation

particularly

4.

Airways.

of some

airports,

Scendin

capital

Airports British

Authority, Airports

is being

explored.

on Unrealisticall

Hi h Fares

Subsidies The Government payments

of excessive

operators High

subsidies damaging

are

ratepayers. Public could

be more

on the

If high

spending

that

to travel

highly has

people

back

on to

High

they

subsidies

are buying

promote

efficiency,

suhsi.dised

fares

to be paid

by somebody,If

this

of ratepayers, financed

employed

has

are not

by the Exchequer,

elsewhere.

'cheap'

an obvious

particularly

x

terms,

off at the

as much.

effortsto

the rates,

are

the

or in social

of the service

or resouict

cost-effectively

many

that

transport

the better

to relax

finances

t - to rise

in economic

attract

cost

through

subsidies

to public

to favour

not

of the service

financed

impact

tend

operators

believes

the cost

tend

the true

transport

The Government because

who

from people

enable

either

in practice

and they

its predecessor,

of subsidy

justifiable

of the poor

disguise

as did

levels

do not

transport

expense

and

is not

subsidies

public

believes,

and

business ther

- 15 The Government services

would

reasonable

against

not be viable

balance

the traveller, and that

is not

should

without

because

it, but

be maintained

the ratepayer

indiscriminate

subsidy,

between

should

essential

it believes

and taxpayerand

subsidies

some

that

the interests

the transport

not

be paid

a of

operator

regardless

of

need. When adopted case

some

Labour

low fare/high

of the GLC

levied

to pay

GLC was

and West

in breach

within

protected

from

the legal

basis

levels

rolling

in policy

plans,will

by local

of subsidy

rates and

and

for.an

the

area

of subsidy area,

or the GLC

above

forcing

which

local

reckless

is

it risks

authorities

and by providing

discourage

to provide

Metropolitan

Authority

spending

of subsidy

in the

to its ratepayers.

provides

the Metropolitan challenge,but

decided

unreasonable

in each

The legislation,by

proposed

year

shifts

5.

legal

were

duty

1983

in 1981

the supplementary

fiduciary

Act

elected

the Courts

that

fullconsultation

which

challenge.

policies,

reduction

Transport

after

spending

three

fares

to clarify

to be defined

Councils

Midlands

of its

for stabilitylthe

justify

subsidy

for the

In order

legal

Metropolitan

to

for annual spending

and

sudden

councils.

The Railways The Government

performance travel

and

has

cost

compete

constantly

efficiency

from

road

control

effectively, and

must

up on costs,

become

more

slow.

However,

liberate

efficient.

under

funds

reform

has:

The market

as a result

in the

burden

for

of inefl'i:iency, In order

has

to

of the railways British

workingi.7.ractice

progress

rail

of s7r--)r.2

railways.

for investment,

antiquated

Unfortunately

of improved

the pressure

the mounting

more

the Government

the necessity

Rail.

but also

standards

to reduce

the taxpayer tighten

years

transport

and poor

urged

on British

decline,d in recen7

competition poor

has

been

on

Rail and

disa:intingly

- 16 backed

up the BR Board

unions

to agree

reductions been

in its

to changes

and increased

extremely

cost

reductions.

support

have

been

all public

per passenger

terms

since

given

approval

amounted mile

in principle

for each

been

able

investment

to spend

external

the last been

Government

than

in the

requests

£220

existing

rail

for the

future,

management Rail

are

given

and the

of mainline economic

case

level

Although

BR have

investment

ceiling

in the last

years

Rail,

under

under

identifies

annually

money

this

appointed

undertaken

scope

by 1986

freight

Labour;

the Government

of the railways

Report

more

for rail

years

1975-9

not

on the railways

grants

four

in

within

3 years,

terms

More

in the

four

million

sin

for cost

within

the

network; the Government

suggestions

considering

from

in real

at the same

in cash

review

The Serpell

following

significantly

Labour.

limits

by British

far-maching

worth

ceiling

Government.

have

savings

alone

in 1982,

to a programme

on investment

facilities

the war.

million

risen

up to their

finance

spent

the most

Grants

project;

as it was under

after

of financial

to a satisfactory

terms

under

levels

and to help

1979;

real

than

the recession

to £926 has

the

has been

manning

it to overcome

to the railways.

maintained

their

during Record

electrifica-,:ion subject made

the

practices,

to BR in helping

given

sources

grant

being

in working

difficulties

it make

to get

efficiency;

generous

its financial

efforts

the scope structure

following

made

has

to the

made

it clear

Serpell

Enquiry,

for a reorganisation

of the

of BR along up suggesions

regional

lines.

for effioieAcy

that it is

British savitAgs

7.0

- 17 made

in the Serpell

Report.

want

to see a major

programme

the railways methods

to compete

beqsome

bus

reviewing

6.

economic alleviate

substitution.

the scope

for

Gatwick

Travellers

line,

in Trans

trying

ort

investment recovery, the

has

acted

to maintain

expenditure

to ensure in order

300 miles

of new motorway

opened

since

1979

which

will

inherited the last levels The

has been be completed

from

two financial

inherited

forward

1982-3

from

programme

and 70 local

has

bypasses

in 1986. has

been

and

to

road

outer

The level

Output

have

been

for 43 communities.

maintained

years.

on

promote

trunk

to the M25

orbital

road

of spending

and

increased

is up well

above

in the

Labour. budgets

authority

and 1983-4.

maintenance from

Labour

expenditure

on the environment. and

including given

that

investment

traffic

Nearly

Top priority

Victoria-

on current

to help

our existing

of increased

May

Sealink,

etc).

wasteful

is maintained

effects

(eg.

or private

Infrastructure

to minimise

the Government

Fare

will

and BR are

privatisation

schemes

competitive

and there

The Government

not

nevertheless

far more

and cars,

further

does

closures,

to adopt

coaches

in investment

While

transport

with

the Government

of route

to have

participation

Investment

subsidies,

are going

Whie

for bypasses

bypass

starts

Expenditure

increased

have

for 220 communities, been

on motorwa;

dramatically

approved

for

and trunk levels

d

inherited

Labour.

Although 1979, is not ceiling

railway

investment

it has been because

less

in real

of Government

but because

has

resources

increased terms

than under

constraints which

in cash

on BR's

should

have

terms

sine

Labour.

Thi

investment gone

into

- 18 investment

have

action

inefficiency.

and

Local

transport

Line

The Government

which

projects

are going

British London

Safety

Terminal

the

strike

the Piccadilly

4 and

a light

ahead

Policy

siting

unsettled with

terminals

proposals

at Stansted.

The

for the introduction

authority

into

the

to develop

Government

a third

is considering

of private

Authority's

Investment

at Heathrow

and local

is underway

and

London

for 20 years.

new

enquiry

in 1979

of a third

of regional

Authority's

Airports

include

from

capital

into

the

operations.

and Law Enforcement

Increased

possible

been

development

Airport

British

and law

had

Airports

ahead

its Airports

about

and a public

the scope

Road

announced

Airport

airports

going

for losses

docklands.

uncertainty

and Gatwick,

to pay

to Heathrow's

to London's

removed

diverted

projects

extension

railway

7.

been

road

traffic

enforcement. should

injuries

has

to be a balance

caused

for the motorist.

accidents,

between

the

motorcycle

a new two-part learner

rider

test,

toll

of safety

as

of deaths

recognising

laws withnew

training

and

by limiting

can us'e before of a provisional

After

a free

vote

belts

should

be compulsory

is coming

as much

and

that

there

freedom

evidential

stations.

the duration

Evidence

that

of safety

has:

up on drink-driving

Encouraged

while

interests

at police

it problems

the appalling

by road

testing

with

believes

to minimise

The Government

Tightened breath

brought

The Government

be done

and

has

safety

the size

taking

by providing of vehicle

a test,

and

for a

by limiting

licence.

in Parliament,

it was

for front

in of a dramatic

decided

seat

that

seat

passengers.

decrease

in the number

- 19 of serious

and

Introduced

a new penalty

offences

to replace

considered Extended burden

8.

traffic

had

traffic

the need

Appointed

and the

forward

of heavy

the lead

which

had

been

the

the Courts.

and

lorry

White has

Papers

put

of petrol

petrol

with

the EEC to this

altogether

noise

aircraft

and

nuisance

of aircraft

steps

of people

them

limits

on the

quieter,

for those

traffic

greater

and

priority

action

by two thirds that

lead

and

to

to bypasses.

its plan

by 1986,

should

to reduce

and has

be removed

is seeking

agreement

policy. controls

ha-re been

ha':e been noise

affected

taken

round

The Civil

for

and Heathrow. • noise at Heathrow

2 million

Aviation

to take

environmental

when

whether

to grant

air

-

the

Gatwick

by aircraft from

announced

to minimise

a s7=atutcry duty considering

brought

cleaner,

help

for

of heavy

package

to place

into

by 1990

be reduced

by 1990.

therefore:

schemes.

gave

already

from

lorry

by lorry

control

road

the problems

by the growth

to provide

its intention

will

to examine

to make

affected

by increased

The Government

measures

efficient,

content

stringent

created

caused

contained

local

now announced

300,000

traffic

to relieve

from

urgent.

in 1979

lorries

The Government

instance

offences

for action

badly

two Roads

number

system

The Government's

and more

encourage

New

for road

up system

fine

environment

in 1982

particularly

The

totting

problems

an Enquiry

traffic.

safer

system

Protection

made

size

points

penalty

the environmental

lorry

as a result.

unfair.

of minor

people

injuries

the

the fixed

Environmental By 1979

fatal

to less

Act

1980

factors transport

The for

than

,-;:ave the CAA into

a;.unt

licenc,as.

- 20 D.

Common

The

Government

hostile

to

transport.

Misconce

is

ublic

tions

The

Government

transport money

is not hostile

but

it believes

is to be spent

subsidies, a right

the

and

the maximum

not

believe

total

record

has

distance

reduced

fares.

to urban

transport

which are

and

the reckless

damage

hardly

Labour

everybody's

policies

Grants

now

More in The

licensing

has

in the number

services

The Transport

for reasonable

of some

the railways

Labour.

increase coach

than

in money

on investment

provided

policies

The

more

a day.

of coach

of long

- a

difficulties

million

a dramatic

discourage

spending

than under

liberalisation meant

transport

efficient.

spent

money

in 1983-4.

to help

more

£2.5

the railways

to

of public

financial

been

handouts

by the Government's

terms

run at over

It does

Contrary

million

their

has

for money

State

on the railways

to become

money

value

is actually

in real

and

good

on public

of £1700

overcome

or ratepayer

amounts

spent

before

and

transport

of efficiency.

made

Government ever

on public

inefficiency.

allegations

are being

if public

in massive

to finance

critics,

that

taxpayer

to expect

to public

levels

with

Act

of subsidy

is designed seesawing local

1983

to subsidN

authorities

interess.

of a Government

The.,e

- 21 which

The Government pro-car

is too

and aro-road

and has not

done

enou h

for the environment.

All

is anti-public

Governments

that

most

the rise

have

people

personal

standards.

Our

move

freight.

over

to force

roads

onto

Instead,

and

road

minimum

traffic

roadsr-and

phased

remove

will

is being

lorry

Government

is

taken

The Government

the Labour

as well. to ensurin

with

the

policy

economically

gives

higher

45 have

in the next

in petrol

traffic

-.Df

lorry

from

aircraft

against

and

centres

introduced.

to reduce

is not

is being

package

the heavy

has been

been

and a further

be built

L,ad

of population

The

for

May 1979

to control heavy

or

as quickly

building

cT_It. A 2tringent

measures

fact

be directed

to bypasses.

4 - 5 years.

off

the last

this

road

important

220 bypasses

realities.

to the environment.

the need

since

of all

or goods

can move

emphasises

completed

and

these

as possible

The Government's

living

not be possible

must

of damage

priority

ignore

recognised

efficiently

and

82 per cent

people

policy

and

is heavily

the railways;

Government

fact

dramatically

transport,

it would

right

that

economy

We can not

In practice

has

mobility

on freight

the

to own a car,

ownership

increased

lorries

accepted

want

of car

dependent

transport.

Acti,_;n noise.

cheap

fares,

- 22 a ainst

chea

fares

but

ood subsidised

always

cit

transport.

GLC's

'Fares

cheap

policy.

by the London

LT by the GLC was paid

London

businesses

jobs.

Although

now

and

onto

such

subsidies

the Government

Of course of cheap should

fares,

be cheap

the taxpayer transport costs

but

and become

a fair

that

believes

should

more

including

aim

efficient,

to cut the only

transport.

Neither

_,,gainst all

subsidy,

'cheap'

balance

they

Therefore,

and ratepayer.

operators

to real

is in favour

for everybody,

is the Government but

less

off.

well

way

the

of the

expense

off at the

that

to favour

tended

their

from but

transport,

public

cars

better

people

attract

not

policies

It subsidy

did high

only

not

that

then

argued

South policies.

such

pursued

who

Yorkshire

it was

policies

subsidy

like

Councils

penalised

has

in Government

high

excessively

against

to cut

had

Party

the Labour

its mind,

changed

have

would

bill,

rates

for the mounting

to pay

order

in

and

by businesses

are paid

London

in

of all rates

62 per cent

ratepayer.

on

imposed

deliberately

inefficiencies

for

and

for this

the price

but

down

gone

may have

fares

The

not a

was

policy

Fair'

The

by someone.

to be paid

has

and

of the fare

the price

it recognises

has

to be maintained

- 23 between

the interests

and the

traveller.

be paid

indiscriminately,

need.

of the ratepayer Subsidies

The Transport

for a reasonable

should

not

regardless

Act

1982

balance

of

provides

to be maintained

in future.

Wh

are trans

s stems chea

ort

abroad

er than

much

in Britain.

It is true

that

urban

in cities

abroad

of subsidy

than

However,

many

transport

they

operators

It is estimated was

could

be made.

levels fares

would

of total will

provide

transport

on the

buses

is killin

rural

transport.

off

operators and cost

Not

There

the new rules licences in

'Trial

transport.

and

a year existing

enable

percentage Act

1983

for urban

to plan

for better

reductions.

is no

for rural

in Britain

the existing

evidence

for the granting

Areas'

Transport

The Transport

efficiency

true.

efficient.

with

a larger

stability

as a

cities

this would

cover

costs.

more

£80 million

lower

only

transport

if London

Of course

to be much

are

cases

as other

of subsidy,

subsidy

Deregulation

that

of at least

levels

urban

for Europe

are much

as efficient

savings

subsidies

in many

abroad

higher

and British

average

However,

enjoy

systems

do in Britain.

do not

below

whole.

often

operating

a little

transport

routes

has

that of

or delicensing

damaged

On the contrary,

rural delicensing

- 24 in

the Hereford-and

has

produced

Worcester

better

rural

in rural

bus

Trial

Area

services

at lower

cost.

The

decline

new

phenomenon.

since

the

changes

had

into

services

generous

support

to public

areas.

The Government

the use

there

will

s read

ell

be wide-

rail closures.

The

a growth

Report

and misreprented. Report

Councils

transport

to

in rural

recognises

that

to the problems

low cost such

is concerned

buses

1979

growth which

with

and car

there

has

in such should

has been Mo-t

schemes, for

services,

Since

the

and

as minibus

and post

transport

a significant

Serpell

has

so it is emphasising

schemes.

services,

or nearly

of financial

is needed

of school

sharing . been

County

levels

schemes,

conventional

conventional

the Government

for alternative

voluntary

Ser

wholly

provide

need

after

running

rural

areas,

massive

many

local

who

it is simply

keeping

allowed

o f rural

parties,

to pour

Nevertheless

approach

It has happene

that

empty.

a new

That

of both

effective

subsidies

and

ownership.

to recognise

cost

rural

of social

in the countryside car

is no

happening

as a result

Governments

have not

It has been

1950s

increased under

services

continue.

misundestood

oi tke.,(mdjc_ty) scope

for

improved

- 25 efficiency scope

on the railways

for savings

by 1986 within Critics

of £220

the

attention

which

sets

the future

existing

tried

rail

saying

network,

in the Report,

illustrations

cuts

of funding.

these

given

Serpell

One

for an increased

not

Government

has

already

were

levels

no recommendwas

in a slightly

Serpell

policy,

Report

it clear

that

it does

closures.

It is

the aim of the Government

to achieve

better

railway

gives

more

services helps

value

quality for money

and

for the passenger.

to identify

how

is

and the Government

to see massive

and higher

that

illustrations

The

made

only

different

investment

network.

that

of network

made

of these

for

in the network.

of the sort

be expected

to

of the Report

'options'

In fact

not wish

have

network.

out so-called

recommends

reduced

annually

rail

to the part

Serpell

ations.

identifies-

million

of the Government

shift

could

and

which

improved

The

this

a

Report

aim can be

achieved. in money That

the Government

has starved railways

of

investment.

the

terms

More has been invested in the railways/ (though not in real terms) /u.nder this Government than under Labour (£1600

million

from May

1979

to £1100

million),

and many

projects

are going

ahead.

tc losses industrial

from

inefficiency

disputes,

BR has

as opposed investment

However,

due

and not

spent

- 26 up to its years,

investment

even

though

the railway terms.

more

The taxpayer

without

some

The

that

more

the

Serpell

could putting

Government

in

accepts

is needed,

but

demonstrated,

BR

the money

Government

for this

in order

has

given

as

from

and

approval

of electrification,

been

slow

justification

the problems is little electric

firm

for specific

projects.

of the railways,

evidence

is any more

Therefore,

is expensive,

every

an

comfortable conventional

electrification

project

on grounds

that

than

since

for all

and there

to suggest

for the traveller

justified

but BR

is not a panacea

train

diesel.

to a

in providing

Electrification

or good

the railways

costs.

programme has

into

its own house

reducing

in real

be expected

improvements

Report

has given

ever

cannot

investment

generate

than

money

major

efficiency.

in recent

the Government

money

to go on pouring

The

ceiling

has

to be

of commercial

effectiveness.

Unfortunately

lines

been

able

that

electrification

cost

BR has not

evidence

to show

worthwhile approval

commercially. has been

of the main Harwich,,

line

and

given

on many

co produce is

Nevertheless for electrification

to Ipswich,

the Government

Norwich hopes

and that

- 27 BR will

be able

for other

lines

and freight

The Government the road should

has

oro ramme,

be buildin

motorways.

cut it more

and

the roads

has

has

soon.

miles

of roads

on roads

Output,

it

over

the

(ie the actual

built)

is well

up on and

levels

inherited

from

Labour,

prices

have

much

more

been

of

from

the recession,

spending

two years.

the size

it inherited

and despite

last

forecasts

Intercity

maintained

programme

increased

better

for their

businesses

The Government

Labour,

to produce

tender

competitive

than

before.

It is unrealistic the motorway size

has

trunk

users

much

and

taxed.

a, too

are over

a much

and

our motorway

needs

given

It is true

Excise

represents roads

Duty

and

programmes.

To argue

sensible

the

road

as arguing

in

taxes

in no area

allocated

cover

collected

fuel

are

is

of transprt

But

specifically

only

programme

the cost

taxation

of minor European

times

programme.

the

infrastructure.

the amount

three

Government

other

assessment

our existing

that

of

countries.

system

than most

on a realistic

Vehicle

in other

better

based

the size

in the UK with

roads

countries,

Road

programme

of the programme

Britain and

to compare

of

ie

of

tax revenues to particular

that

car

spendin

tax should

programme

is as

that

on drinks

duty

- 23 should

be spent

only

or oil

taxation

should

develop

North

road

Sea

tax would

on help

for drinkers,

only

be used

oil reserves.

mean

more

to

Lower

tax on other

items.

Although

road

risen, rate

they

over

users

enou h tax there

av

and so

is unfair

com etition road

do not

have

has

the past

and rail.

has

massive road

Report

subsidies pay

from

to maintain,

the road

network. came

costs.

This

the most

their

has now

damaging

at a level

build

of what

before

this

heavy

share

lorrics

of road

been

changed,

lorries

now pay

reflecting

while

and police

office,

fair

It gets

in excess

However, into

it is rail

the taxpayer,

tax well

it costs

if

in competition

advantage.

pay

terms

demonstrates,

an unfair

did not

on

in real

and rail,

Government

the

duty

road

users

have

above

fallen

is any unfairness

which

duty

few years.

As the Serpell there

risen

in fact

actually

at all between

between

not

of inflation;

petrol

Road

tax and petrol

the damage

track

and VED they

do

to the roads.

The Government

does

This

not

the

to recognise

care

im_act

about

of trans

the environment.

ort_on

Government

to curb

is the first,

but

not

to do something

the impact

of heavy

The Government's

package

fewer,

mean

positivc

traffic

Lhe environmentc will

only

cleaner,

on lorry safer

- 29 and

less

petrol

is being

noise

The Government doin

nothin

is

has

In 1981,

the Government Policy

procedures

towards

Government National Fares

the

Scheme.

spent

railway

tracks

schemes

are

rests

into

going

with

ahead

local

travel

half

fares

and

body

would

be difficult

so on.

pensioners,

but

this

hundreds

of millions

national

half

extra

£100

fare

million

27 more

concessionary

councils; some

some

witnout scheme

would

every-

introducing for

cost

of pounds. scheme

give

give

To satisfy

travel

10

now.

to pensioners,

free

schemes

old

ways.

to grant

free

a national

about

cycle

to turn

cycle

the power

cycling

and in 1982,

completed

and

by central

and Wales,

were

cyclists'

two years

in England schemes

to cycle

facilities,

on 21 innovative

fares -

been

after

Government

At present

set uo a Concessionar

has

safer

simpler

Councils

In the last

£200,000

proposed

improve

County

a

of regional

to look

plan

greater

footpaths

offiercs and

aircraft

published

requirements,

cycling

in

to bypasses.

which

the appointment

schemes.

doesn't

Paper

tracks,

grants

and

given

to convert

interests

Wh

been

Lead

out,

reduced

priority

construction

the cyclist.

lorries.

phased

is being

Cycling

to hel

obtrusive

would

per ann%zm,

Even COE:

a an

- 30 money

which

would

have

to be found

somewhere,

either

from

other

programmes

(perhaps

benefit

pensioners) rates

and taxes.

scheme

still

would

are

buses

no bus

or have

needs

run

do somethin the British Industry,

the Government to sort Ports

out

to adapt

Ports

over

the movement

coast

trade

these

of the

by the operation which 'jobs

there

was

their

jobs

in world

of traffic coast,

from

a decrease problems

'container' been

the

revolution, exacerbated

of the Jones/Aldington gave

all registered

and Harbour hard

no matter

justification

or not.

of London

authorities

patterns

for life'

arid t e GovtLnmt

have

two decades

have

economic

particularly

Industry

and overmanning

problems

agreement

to the

the past

to the East

in the wake

Docks

nearby.

flexibility

of shifting

the Port

the

provide

declining

workers

to use

population

in world

All

20 per cent

local

of the British

West

to

to the

Parts

trade,

of

tailored

of the elderly.

because

be fair

service

needs

been

which

A national

too infirm

schemes,

of the

greater

programmes

at least

of pensioners

Locally

can't

not

because

expenditure

or at the cost

higher

everyone,

Wh

other

from

The

Company hit

whether for

finances

Authority

dock

of

and Mersey

have

by all

been

these

facto

'as givi,r iJoth

financial

help

to enable

thei

- 31 to make and

essential

to continue

the story

is much

in better

financial

iven

u

rivatisin Airways.

its idea British

The of

British

reason

date

However, since

which

and

demand

there

of route

industrial

result,

British

in 1981,

profits.

been

has

taken King probl2ms

suffered

low productivity numbers

have

been

an extensive

reductions

faces

The aim

and asset

have

disruption.

Airways

and

fundamental

measures

minimal

downturn

Airways' has

but

The main

in 1980

Airways

nas been

future.

in

of Sir John

Staff

disposals.These

financial

the

particularly

cut

programme

given.

was

to remedy

overmanning.

ports

as possible,

was never

and

of

owns

as soon

British

in the past,

which

confidence

opportunity

1981

a

holding

to privatise

the appointment

in early

The sale

profitable

out British

the

them

been

passenger

wiped

and

industry.

for the delay

airline which

always

invested

offering

Ports

public

Airways

a-precise

from

most

of the

aim has

British

have

and cheaper

future.

increasing

the health

has

ports

of the Government's

19 of Britain's

The Government

Many

services,

in Associated

shows

better.

technology

51 per cent

Elsewhere,

Southampton,

efficient

healthy

reductions

operating.

eg. Felixstowe,

more

manning

involved As a

a br::.ghter

is to achieve

- 32 privatisation the next

Deregulation services

will

withdrawal services areas

mean

from

the

remote

as the

Islands.

General

Several

of air

such

Scottish

of air

as soon

air

and

essential

social

they local

Islands

subsidised

and

Channel

Islands

preservation

not

and very

is a consideration

The CAA

other

into

major

and

operates

(Benbecula,

Inverness,

Sumburgh,

their

are about air

the links

has

to

in any

never

been

total

7 aerodromes

and

Islands

Islay,

and Wick).

for Sumburgh,

Scottish they

Tiree

the aerodrome

operations

in the

UK points.

account

Highlands

have

of

in the

which

the Scottish

Except

and

of deregulation.

owns

operates

only

scheduled

This

and

discussion

central

sensitive

London

they

to run

elsewhere,

of their

fully

since

but also

with

be taken

by

as

The inhabitants

Islands

understandably

and

economic both

communities,

Highlands

Scottish

are regarded

services

government.

remote

in the

of themselves

are

after

Election.

services

Highlands

are not

as possible

It also

at Stornoway. these

aerodromes

in a position

operating there

costs

to cover and the CAA's

are subsidised

Development

are an essential

the Highlands

and

the SDD grant

amounted

Kirkwall,

Department social

Islands°

by the because

service

in

In

to £3.6

million.

- 33 The Government consider

how

transferred

has

asked

the aerodromes to the private

in the expectation be run more better

local

that

communities

account

that

efficiently

service.

an assurance

the CAA might

will

in any move

be

sector

they

could

then

and give

The Government the

to

interests be taken

has given of into

to privatisation.

KM/CR 23.4.83

LIAISON COMMITTEE PUBLIC TBANSPORTIN SCOTLAND UTTRODUCTION Public transportis an importantand sensitiveissue in Scotlandbecause of the country'sgeneral remoteness,and particularlybecause of distanceand general difficultiesof communicationwithin Scotland. The ConservativeParty in Scotland is most dependentfor its support on rural areas, where the supnly of public transportserviceshas deterioratedin recent years, and is Perceivedto be under continuingthreat. In recognitionof this the Party undertookcommitments in its 1979 ScottishManifesto to increase subsidiesfor shipping services,and to press on with the Scottishtrunk road programme,particularlythe duallingof the A94 north to Aberdeen. These Manifesto commitmentsare being honoured in spirit, if not to the letter, and the Governmentthereforehas a Imod story to tell. However there remains significanttransportproblems,actnpl or in prospect, and these will continue to require careful handlingand presentation. SHIPPINGSERVICESTO THE ISLANDS The

1979commitmentwas

to increase the level of shippingsubsidiesso that they

would come nearer to road eouivalenttariffs. Wd have trebled the_ , in 1978-7 when we revenue subsidiesfor shippingservices (from £4.3m took office, to

£12.14min the current financialyear). The scope of

shippingsubsidieshas also been extendedand we now subsidisenot only the CaledonianMaarayne servicesto the Western Isles, but also fares and charges on the P & 0 servicesto Orkney and Shetland,and the charges of certain bulk freight carriers. CaledonianMaarayne's charges have not now been increased since 1981, and this representsa substantialreductionin real terms for the islanders. The honouringof this commitment,against the backgroundof all the other economicdifficultieswe have faced, is generallyunderstoodand anpreciated by the islanders. In addition,we have announcedour commitmentin principle to a nro7ramme of major vessel replacementfor the Western Isles, and the first major vessel in the programm for the service to Arran - is now under construction,at a cost of over £7m, What the Governmenthas not done is to chan.zethe structureof the subsidy systegl in order to take on board the full technicalitiesof a road equivalenttariff system This is because substantialpractical difficultieshave been encounteredwith sw_711

1.

a system. Our failure in this respect is occasionallycriticised,but can be answeredrobustlyby referenceto our record of subsidy increases. The Governmentis now consideringwhat action to take followingthe recent completion of a report on CaledonianMacBrayneby the Monopoliesand Mergers Commission. This producednumerousproposalsfor the more efficientand cost effectiveoperationof that Company,and the implementationof these will be to the great benefit of ferry

users. There is no need to be defensiveabout the MonopoliesCommissioninvestigatior with CaledonianMadBrayneas with any nationalisedindustry,inefficientoperationca. only mean Poor service to the customer,as well as greater cost to the taxpayer. ROADS Good progress is being made on the Scottishtrunk road programme. Projected capital expenditureIn the present financialyear is £97m. . Major achievementssince most of the new A9 between CromartyFirth, 1979have been the completionof / Perth and the/and good progress is being made . on the duallingof the A94 to Aberdeen. Another main priority has been the A75 from Gretna to Stranraer,and considerablefurther progress is beirg made with this. A furthermajor programmeof trunk road schemeis now in preparationand includesa high proportionof bypass schemes to relieve communitiesat present situatedon busy roads. The continuatimaof the Scottishtrunk road programme at a high level will be of major importance for the developmentof commerce and industryin Scotland,hampered as it is by its relativeremotenessfrom markets and sourcesof supply. sgavIcEs AIBPORTSAND AJOIR The Government'sdecisionto allow British Midland Airways to operate on the LondonGlasgow and London-Edinburghroutes has increasedcompetitionand the quality of serviceon these routes, to the great benefit of consumers. There have been further recent improvementsin air servicesbetween Aberdeen and London; and the recent route will produce a substitutionof Dan Air for BA on the Inverness-London significantlybetter service there. Followinga recent recort by the Select Committeeon ScottishAffairs, the Governmenthas confirmedits policy for the managementof the central Scottish airportsowned by the British AirtortsAuthority. At the same time the BAA and the ScottishTourist Board have joined in a major promotionalexercise for Prestw.: airoort,which has sufferedbadly from the contractionof transatlanticservices during the recession. Central Scotlandwill thereforecontinueto enjoy a level

2.

of airport Provisionunparalleledelsewherein the country. The provisionof air servicesin the Highlandsand Islands gives cause for concern. The Governmentdoes not in ganeral subsidiseair services (thoughit reserves the right and has the power to do so in certain restrictedcircumstanceswhere such servicescross regionalboundaries,connect islands with the mainland,are essential to the life of the communityserved and would not otherwisebe provided). The Governmentdoes howeverprovide substantialsubsidy (of approximately24m a year) towards the upkeep of the eight Highlandsand Islands airports,owned by the Civil AviationAuthority. The Governmentis not persuaded that the CAA is best placed to run these airports in the most efficientand cost effectiveway, and is therefore currentlyinvestigatingthe possibilityof privatisingthem. This intentionis publiclyknown, and is not unpopular,given widespreadlocal dissatisfaction with the CAA's stewardship. It remains to be seen whether privatisationwill be Possible. If not, other alternatives- includingpossiblymunicipalisation- will need to be considered. It is importantto present the currentprivatisationinitiativeas arisingnot from politicaldogma, but from a recognitionof the widespreadconcern at the need to provide cheaper airport services,more flexibleand responsiveto local needs. BUS SERVICES The main providersof stage-carriage (ie local stoppin) bus servicesare the subsidiarycompaniesof the ScottishBus Group, a nationalisedindustry. 5BG has now transferredcompletelyto one-man operationand has recentlyundertaken major reviews of its network, to produce the most efficientand market-oriented pattern of services. Some of its more uneconomicrural servicesare subsidised by local authorities,but their subsidy remainsmuch less significantthan the cross-subsidyto such servicesprovided from within the ScottishBus Group itself. There has been local criticismin Scotland,echoed by the Select Committeeon ScottishAffairs last year, of the Governmentrequirementon the ScottishBus Group to make a positive financialreturn, hence generatingthe local zovernment subsidyrequirement. The Governmenthas said in response to the Select Committee that in fixing a new medium-termtarget for the Group, for the Period from 1 January 1984, it will take full account of social as well as economicconsideration

But the fixing of an approoriatefinancialtarget is a necessarydisciplineto ens-ure the continuedefficientand cost effectiveoperationof the Group's services.

3.

The liberalisationof access to the bus market introducedby the TransportAct 1980 has had considerablebeneficialeffects in Scotlandthrough the encouragementof new generallyprivate sector, expressbus servicesalong main travel corridors- for examplebetween Aberdeen,Invernessand central Scotland,and from Glasgow and Edinburghto London. These highly efficientand-low cost serviceshave proved a particularadvantageto the less well off - for example,Pensionersand young people. Liberalisationof access has not, however, generatedany Private sector interestin low density rural areas, which are neverthelesshighly dependenton the continuanceof basic bus services. These serviceswill remain dependenton subsidyor cross-subsidy,and any proposalto privatise the nationalisedbus sector in Scotlandwill be very difficultto defend to traditionalConservativesupporters. RAILWAYS The SerpellReport on railway financeshas produced considerableconcernin Scotland where the existingrail network,much reduced by the Beeching cuts 20 years agn, is widely regarded as being at a minimum. The remainingHighland railway lines, though probably inevitablyloss-making,are major transportarteriesconnectingremote communitiesover very long distances. It is thereforeimportantto reassure Scottishqpinion that the Governmentdoes not "have it in" for British Rail, and fully understandsthe problems of remote communities,but is nevertheless concernedto ensure value for money and as efficienta nubile transportsystem as possible. The Government'swillingnessto support the railwayswhere that is justifiedis amply evidencedby the substantialcapital grant (up to Z15m) which the Governmentis giving to StrathclydeRegional Council for the electrification of the Ayr railway line and for the refurbishmentof electrifiedrolling stock on the Glasgow suburbannetwork. CONCLUSIONS The Government's5lbligtransportpolicies, as they affect Scotland,can be presentedvery-positively.The massively increasedsupport for shippingservices representsa new level of commitmentto the island communities,and has led to the substantialreduction,in real terms, of travel costs for islanders. The surface transportinfrastructurecontinuesto be developed,principallythroup.h the trunk road programme. The Governmentis concernedto maintain a basic nctwork of air servicesin the Hiznlandsand Islands. It pays substantialsubsidy for the local airoortsin these areas, and is seekingmore efficientand cost effectiveways of providingairport services. The Governmentis consciousof the dependenceof many rural communitieson their bus servicesand is committedto facilitatingthe maintenanceof essentialbus services. Their approachto prnblens cf Scottish

railways

is

not

dogmatic:

the

of State for Scotlandis providing

Secretary

Scotland, in west central substantialfinancialassistancefor new railway projects and the Governmentis fully sensitiveto the importanceof the Highland rail ne.irk in particular.

-r

5.