Written Response by the Welsh Assembly Government to the Enterprise and Learning Committee report: “Future Railway Infrastructure In ”.

The Welsh Assembly Government is committed to the development of a modern and sustainable transport network that can support the renewal of our economy and help to develop a more inclusive society. We are also committed to putting transport onto a carbon reduction pathway, so that it can play its full part in meeting the challenge of climate change.

The railways form an essential part of our plans for the wider transport network. We want to develop a clean, efficient and effective rail system, which can meet the needs of passengers and the freight market. We will continue to work closely with the UK Government, Network Rail, the train operating companies and other stakeholders to take forward the infrastructure and service improvements necessary to deliver this vision.

I am grateful to the Enterprise and Learning Committee for their report. I very much welcome this considered and thoughtful contribution to the debate on how rail can best contribute to the development of a modern and sustainable transport network which is fit for the 21st century.

I have set out below my response to the Report’s individual recommendations.

Recommendation 1 We recommend that the should make the preparation of Transport Assessments a statutory requirement as part of the planning process for new development.

Government response

Reject

1 We are undertaking a comprehensive review of the planning application process to see what improvements can be made and will consider the Committee's recommendation as part of this process. However, at present, the Welsh Assembly Government does not consider it necessary to require Transport Assessments on a statutory basis as we believe this would be overly restrictive and inflexible. The Welsh Assembly Government is supportive of the need for the planning system to deliver good decisions and to ensure that the impact of traffic generation is fully considered. It was for this reason that in 2009 we strengthened Planning Policy to require Transport Assessments for a range of major traffic generating uses. This policy also recognised that there may be instances outside of the prescribed categories of development which will have significant impact on traffic generation and local planning authorities are able to require Transport Assessments to accompany any application.

Recommendation 2 We recommend that the Welsh Government should continue to lobby for the electrification of the railway network serving Wales. As well as the Great Western Mainline as far as , the first priorities should be the diversionary lines between South Wales and London, the area network - including the Valleys Lines - and the North Wales Mainline. We also recommend that Network Rail ensure that sufficient gauge clearance is provided on any electrified track to take freight as well as passenger traffic, and that the best technology be used to minimise disruption to rail services while electrification work is being carried out. Government response

Accept in principle

I am already working closely with the Secretary of State for Transport on the delivery of rail electrification for Wales although this is not a lobbying process. The announcement of electrification between Paddington and Swansea to be completed by 2017 was a very welcome first step. My priorities beyond that for south Wales are the diversionary lines for the Greater Western Main Line

2 and the Cardiff Valleys network, including the Vale of Glamorgan, Valleys (Rhymney, Treherbert, Merthyr, Aberdare, Cardiff Bay and City Line) and the Maesteg and Ebbw Valley branches. For north Wales, the priorities are the North Wales Main Line and the North and West (Marches) line.

I shall continue to work closely with the Secretary of State for Transport on the delivery of the Welsh Assembly Government’s clear vision on rail electrification.

Recommendation 3 We recommend that the Welsh Government work with First Great Western to achieve speed improvements on targeted services between South Wales and London by omitting station stops such as Swindon, Didcot and Reading.

Government response

Accept

The National Transport Plan includes a commitment to improved rail journeys between South Wales London. Initially, the Welsh Assembly Government is working with First Great Western to improve journey times and overall punctuality. For example, support from the Welsh Assembly Government has enabled the 05:58 Swansea to London Paddington to run fast by missing out stops at Reading and Didcot.

Recommendation 4 We recommend that to ensure that Wales will not be left on the slow train but will benefit from high speed rail links to the rest of England, Scotland and on to Europe, the Welsh Government should develop a strong case and lobby jointly with other interested partners for a new High Speed Line from London to South Wales, and for the North Wales Mainline to be directly connected to the proposed High Speed 2 Line from London to North West and Scotland.

3 We further recommend that any high speed rail provision should not detract from existing services along classic lines.

Government response

Accept

As I stated in my evidence paper to the Committee, the Welsh Assembly Government’s firm view is that any new high speed west coast line should include connections to and North Wales.

I have made the case for the UK Government to invest in High Speed Rail from south Wales and north Wales to Heathrow and London in my discussions with Lord Adonis and will continue to do so. In December 2009, I met Sir David Rowlands, Chair of High Speed 2, which is the UK Government owned company that is working closely with Network Rail to develop proposals for new high speed lines. This was a positive meeting and I understand that the Secretary of State has received Sir David Rowlands’ report and an announcement is expected in March 2010.

I also said that we recognise the important economic, environmental and social benefits of electrified High Speed Rail lines and we have asked Network Rail to undertake a study of the South Wales to London transport corridor as part of its "New Lines" initiative. This study is on course for early delivery. To build on this work and Sir David Rowland’s report, we are undertaking a major piece of work with Professor Stuart Cole on the economic and environmental benefits that High Speed Rail services will bring to Wales.

Recommendation 5 We recommend that the Severn Tunnel should be adapted for electrification. We also recommend that Network Rail should be commissioned to consider options for renewing the Tunnel in the longer term, linked to the business case for a new High Speed Line from London to South Wales.

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Government response

Reject We do not have the necessary powers to implement this recommendation as DfT and Network Rail are responsible for the rail infrastructure in England and Wales. I understand that the electrification of the Greater Western Main Line, to be delivered by Network Rail by 2017, will include the adaptation of the Severn Tunnel for electrification.

Recommendation 6 We recommend that the Welsh Government, Network Rail and the regional transport consortia work together on options to improve the existing North- South Wales rail line and services, including a programme of line speed improvements, additional faster services and a limited stop service on alternate hours during peak periods.

Government response

Accept in principle

I am able to accept this recommendation in relation to the infrastructure only. I have commissioned Network Rail to deliver a major infrastructure improvement, including redoubling the track between and Chester (Saltney Junction) to remove the capacity bottleneck. The scope for this seeks improvements to journey times of up to 30 minutes for both express and stopping services, the routing of the current express train (Yr Gerallt Gymro) via Wrexham as opposed to Crewe, and an additional Holyhead to Cardiff service in the gap between the existing two-hourly service. These could be either express or stopping services. However, any commitment for additional services would be a matter for future Welsh Assembly Government budget setting rounds. I shall continue to involve the rail industry and the local authority consortia in the consideration of future improvements.

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Recommendation 7 We recommend that the Welsh Government, in consultation with Network Rail, should respond individually to the list of recommended rail speed and capacity improvements listed in Appendix 2 of this report, and update its 2008 Rail Forward Programme accordingly.

Government response

Reject

I believe that the rail improvements set out in my Rail Forward Programme and the National Transport Plan are right for Wales and in line with the Assembly Government’s One Wales agreement. They represent a comprehensive and ambitious programme and will result in significantly improved rail infrastructure and services. I have no current plans to review the Rail Forward Programme but will keep other schemes in mind for the future.

Recommendation 8 The planning of railway infrastructure needs to be better integrated with the provision of more appropriate rolling stock. We recommend that the Welsh Government should agree with the Department for Transport and Arriva Trains Wales how exactly it will deliver its commitment to provide more rolling stock, including longer trains on the Valleys Lines, and that it should publish this in a rolling stock plan for Wales, as we previously recommended. We also recommend that rolling stock provision and replacement should be integrated with plans for electrification of lines in order to achieve synergies and savings.

Government response

Reject

6 The provision of rolling stock, within the Wales franchise, is a matter for agreement between the Welsh Assembly Government and Arriva Trains Wales, not the DfT. My Rail Forward Programme includes a number of rail improvement schemes requiring additional rolling stock. This will be provided as required. Since the publication of the Rail Forward Programme, the north to south express train (Yr Gerallt Gymro) and the Merthyr to Cardiff half- hourly service have been delivered, both with additional rolling stock. Welsh Assembly Government has also been discussing with a number of parties a number of options for additional rolling stock. I have agreed with ATW a substantial programme for modernising rolling stock which involves the complete refurbishment of the Class 153 and Class 158 trains. This will improve customer comfort and satisfaction for the remaining period of the Wales and Borders franchise. Train services on the busiest routes, primarily those in the Cardiff Valleys, have been strengthened so that they consist of 4 carriages. We monitor passenger usage on a regular basis and will be deploying 6 carriage trains when the level of peak demand requires it.

Recommendation 9

We recommend that the Welsh Government and Network Rail take account of the socio-economic as well as the business case for new or re-opened stations. We also recommend that the Welsh Government, in consultation with Network Rail, should respond individually to the list of recommended schemes for new or re-opened stations and lines listed in Appendix 3 of this report, and update its 2008 Rail Forward Programme accordingly.

Government response

Reject

The Welsh Transport Appraisal Guidance process already requires a full range of economic, social and environmental factors to be taken into account in assessing schemes. My investment decisions under this approach, for example, to enhance the Cambrian Main Line railway for an hourly service,

7 have been informed by the full range of factors. I have indicated earlier that I have no current plans to extend my Rail Forward Programme.

Recommendation 10 We recommend that the Welsh Government carry out a cost-benefit analysis of providing new or enhanced Traws Cambria services both to complement existing rail services and to fill in gaps in the rail network, such as between -, Moat Lane junction-Merthyr, -North Wales Main Line and North Wales Main Line-Ruthin-Corwen, linked to the Heart of Wales Line.

Government response

Accept

The Assembly Government has established the TrawsCambria Management Board to develop a network of bus and coach services in areas where there are no corresponding train services. The Board has completed a thorough review of the network and is now looking at options to improve existing services as well as options to introduce additional, limited stop, coach services. These options are currently being appraised by the Board and will be presented to me shortly. I will make an announcement later this year.

Recommendation 11 We recommend that the Welsh Government should agree to fund the proposal, supported by the regional transport consortium SWWITCH and petitioners to the National Assembly, for providing additional trains to Fishguard.

Government response

Reject

8 It would be inappropriate to agree to a Committee proposal to support a particular Regional Transport Plan priority when there are many priorities across all 4 of the Regional Transport Plans, and where there is already an established process in place for responding to those priorities.

Recommendation 12 We recommend that the Welsh Government continue to work with partners to invest in improvements to rail stations in Wales, both for passenger comfort and safety - especially passengers with disabilities - and also for better connecting rail stations with other modes of transport such as buses, taxis and safe cycling and walking routes. We further recommend that these improvements be integrated in strategic transport plans at national and regional levels.

Government response

Accept

Among my highest priorities in the National Transport Plan for improved rail services are improved stations, particularly with regard to accessibility, safety and interchange. I have committed £3 million to the National Stations Improvement Programme and was delighted with the launch in February 2010 of the design for the improvements at Swansea High Street Station. Examples of future schemes under the National Stations Improvement Programme include improvements at Llandudno, Aberystwyth and .

The DfT and Network Rail are providing initial funding of £6 million for the National Station Improvements Programme in Wales and the border counties, and the Welsh Assembly Government is committing a further £3 million towards the Programme.

I am looking to further enhance the funding arrangements for the National Station Improvements Programme by securing match funding from the EU

9 Convergence Programme, and my Department has made an application to the Wales European Funding Office which is currently being considered.

In December 2009, I opened the new easy access platform at Aberdovey which is an innovative and cost effective scheme. Similar schemes will be rolled-out across Wales, and the next station to benefit will be Valley on .

There are other forthcoming station and interchange schemes and the National Transport Plan and Regional Transport Plans prioritise these across Wales.

Recommendation 13 We recommend that the Welsh Government should encourage the regional transport consortia, through their Regional Transport Plans, to develop more Park and Ride facilities to encourage more people to travel by train, and that the assessment of need include consideration of a growth in use to ensure sufficient numbers of parking spaces can be provided.

Government response

Reject

The Welsh Assembly Government already has a plan in place to deliver more Park and Ride schemes through the Sustainable Travel Centre Initiative and the Regional Transport Plans.

We have already funded major Park and Ride schemes at Taffs Well and Bargoed, and there is ongoing funding for the completion of schemes at Abercynon and the Rhymney Valley.

As the Regional Transport Plans have only recently been agreed it would not be appropriate to insist on further amendments at this early stage.

10 Recommendation 14 We recommend that the Welsh Government respond to the Department for Transport’s consultation on “Better Rail Stations” and support the recommendation that Cardiff become a Category A station.

Government response

Accept

The Welsh Assembly Government has already responded to the consultation and, in doing so, supported that specific recommendation in the “Better Rail Stations” report.

Recommendation 15 The Deputy First Minister told us that he would welcome innovative transport solutions, including light rail. We therefore recommend that the Welsh Government work with relevant partners to commission feasibility studies for developing light rail networks in the main urban areas of Cardiff, Swansea and Newport, which should include consideration of how to integrate such systems with existing heavy rail infrastructure.

Government response

Accept in principle

While the Welsh Assembly Government is not in a position to commit to this, I understand that Cardiff Council has a current study of potential light rail networks. My Department will work with Cardiff Council to develop the options and I shall be interested to see the conclusions.

11 Recommendation 16 Given the forecasted growth in both rail freight and passenger traffic, we repeat our 2007 recommendation that the Welsh Government should give higher priority and more resources to encouraging a modal shift of freight from road to rail, including signalling, loading gauge and axle-weight capacity enhancements. This needs to be managed carefully in partnership with Network Rail and the Train Operating Companies to avoid conflict with rail passenger traffic. We further recommend that as part of a study to understand better the pattern of movement of freight the Welsh Government and its partners consider how to plan for the strategic location of terminals to increase the amount of freight that can be transferred to rail transport.

Government response

Accept in principle

Building on our Wales Freight Strategy, the National Transport Plan reflects our commitment to improve the sustainability of freight transport. This includes the provision of support for the modal shift of freight from road to rail, provided environmental, economic and social benefits can be achieved. Our Freight Facilities Grant scheme remains very much open for business, with two significant schemes awarded grants in the current financial year.

We work closely with Network Rail and other stakeholders to consider the future demand for rail freight, including the work undertaken to produce the Freight Route Utilisation Strategy and the Route Utilisation Strategy for Wales. Generally our assessment is that the anticipated growth in the demand for rail freight can be accommodated within the existing infrastructure capacity. There may however need to be investment to address certain capacity pinch-points and we fully accept the need to avoid any possible conflicts between passenger and freight traffic.

We are also working to increase our understanding of freight flows in Wales, which will help us to take forward the Wales Freight Strategy. As part of this,

12 we are working with the Office of Rail Regulation to improve figures for Wales, along with improving regional rail freight statistics across Great Britain. This does however depend on discussions between the Office of Rail Regulation, Network Rail and the Freight Operating Companies.

Recommendation 17 We recommend that the Welsh Government and Network Rail prepare an action plan to identify and connect appropriate ports in Wales to adequate rail infrastructure in order for rail to compete with road and to fit operationally and financially with industries’ logistics and distribution networks. We further recommend that the Welsh Government should ensure the Department for Transport’s current consultation on a national policy statement for ports in England and Wales reflects Welsh priorities.

Government response

Accept in principle

Although ports policy is not devolved, the Welsh Assembly Government sees its role as putting in place the right strategic framework to allow Welsh ports to realise their full potential. In recent years we have developed a strategic policy and planning framework, including the Wales Freight Strategy and the National Transport Plan, which recognises the vital role that ports play in our logistics and distribution networks.

As part of this approach, we are working to ensure that surface access to our ports is adequate to meet the needs the freight industry. Where there are issues around rail access, we will work with the UK Government, Network Rail, the freight industry and other stakeholders to identify the most cost- effective way of overcoming any infrastructure limitations.

The Welsh Assembly Government will also continue to work closely with the UK Government on the development of their National Policy Statement for ports. We helped to facilitate a stakeholder workshop in Cardiff as part of the

13 consultation on the draft National Policy Statement. Our own response to the consultation sets out our approach to the development of Welsh ports, including the rationale for our view that there are circumstances in which public investment in ports can be justified by the wider economic benefits.

Recommendation 18 We recommend that once the National and Regional Transport Plans are finalised, a formal concordat with Network Rail should be drawn up and agreed by the Welsh Government and the regional transport consortia. This would help achieve greater transparency in rail planning from the national to the regional level and closer communication and cooperation to ensure aspirations for the future rail infrastructure in Wales are coordinated and delivered.

Government response

Reject

There is no need for a formal concordat as Welsh Assembly Government is already working in partnership with the rail industry, including Network Rail, and the consortia. The NSIP scheme for the improvement of Swansea High Street Station and the easy access platform at Aberdovey are good examples of schemes delivered under partnership working. The formal process under which Welsh Assembly Government influences rail planning and infrastructure is through the active use of its statutory Railways Act 2005 powers as consultee by the DfT on the Higher Level Output Statement for each 5 year Control Period for Network Rail. Nonetheless, Welsh Assembly Government accepts that there is always scope to improve dialogue and relationships and will actively consider ways in which this could be done.

14 Recommendation 19 We recommend that the Welsh Government should seek equivalent powers to the Scottish Government, together with the associated funding, whether by amendments to the Railways Act 2005 or other appropriate legislative means. We also recommend that the Welsh Government should continue to make a strong case for continued investment in Wales through the planning group for the next High Level Output Specification which covers the 2014-19 period.

Government response

Accept in principle Seeking such powers is not within the current One Wales agreement. However, I will initiate discussion across the Government as to the potential and effectiveness of such powers and make a further response. Meanwhile, Welsh Assembly Government will make a very strong and clear case for continued investment in the railway in Wales during the next High Level Output Specification and has already commenced these discussions with DfT.

Recommendation 20 We recommend that the Welsh Government use the opportunity of the next five-year performance review assessment of the Wales and Borders (Arriva Trains Wales) franchise to seek improvements for rail passengers and better value for public money. We further recommend that the Government establish a round-table partnership with the regional transport consortia to explore how the franchise could be improved.

Government response

Reject

We are rejecting this as the five yearly Efficient Operator Review does not enable us to change the terms of the franchise. Instead, the Efficient Operator Review is a formal assessment of how well Arriva Trains Wales is performing against the contractual franchise milestones. It takes into account

15 important factors like customer satisfaction, train delays and the punctuality of services. The Efficient Operator Review does not provide the opportunity for renegotiating the terms and conditions, or the specification, of the franchise.

The Welsh Assembly Government seeks the best value for money when it procures new services that are additional to the core franchise. An example of this is the new Ebbw Valley service, where the Welsh Assembly Government takes a share of the revenue which it then reinvests in further rail improvements elsewhere.

Recommendation 21 We recommend that the Welsh Government work with the regional transport consortia on developing integrated policies for pricing structures such as smartcard systems that allow people to travel on different modes of transport – rail, light rail, buses – as well as encouraging alternatives to using the car.

Government response

Accept in principle

The focus of the National Transport Plan is on delivering integrated, sustainable travel solutions and we are committed to reducing dependency on car usage as part of out commitment to a reduced carbon footprint. Our Sustainable Travel Centres initiative and Smarter Choices initiatives are key to delivering this. Welsh Assembly Government is developing the Welsh Transport Entitlement card, for seamless transfer between bus and rail services with integrated ticketing. As with the new Cerdyn Cymru card, it is being developed in partnership with stakeholders.

Ieuan Wyn Jones Deputy First Minister and Minister for the Economy & Transport

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