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Sector change - Regulatory futures

Anna WalkerACoRP Conference2 November 2011

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A time of change…

Much to be proud of:– passenger growth – improved performance/safety

Government committed to investment in the rail infrastructure

Industry going through reform:– Network Rail

• devolving to routes• Alliancing/partnerships

– Franchise reform• Longer, less specified

Broader Government agenda:– Transparency - Economic growth– Localism - Linking communities– Sustainability

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A time of challenge

Broader economic climate

Success in railways – a high cost to taxpayers and passengers

McNulty report – value for money challenge

Step-change in efficiency in order to sustain support for continuing high levels of investment and subsidy

Broader economic climate

No room for compromise on safety

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What community rail has delivered

30 designated community rail lines or services

Active engagement of local communities, businesses and others

Development and promotion of local rail services

Improvements to the railway environment:– Bringing redundant land and property back

into use– Provision of additional amenities

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The challenges for community rail

Uncertainty over funding– Local authority support reduced– Regional bodies wound up

Dependent on often small band of dedicated volunteers

Operating at the margins of large network

Reliant on partnerships with Network Rail and train operators

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Potential opportunities: Industry reform

Network Rail– Devolving decision making– New Route Directors– Partnership working with train operators – Comparative information on routes

Franchise reform– Longer less specified franchises– Greater flexibility to shape services

around needs of customers– More investment from train operators

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Potential opportunities: localism

Government commitment to:– Lifting burden of bureaucracy– Empowering communities to do things their

way– Increase local control of public finance– Strengthen accountability to local people

Government consultation paper shortly on localism in rail

Tricky issues– Who is the funder?– Devolution to whom?– Spotlight on public subsidy

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Potential opportunities: periodic review - CP5

Increasing transparency– Of costs and subsidy– More data at major route level– Key enabler for more local decision making

Incentivising and enabling more partnership working

Focus on delivering for customers

Sector-wide performance measures

Are you sufficiently involved?

Localism incentives in PR13?

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Summing up

Community rail movement:– Has long history– Can be proud of its achievements

Government support– ACoRP– Localism agenda

Regulation– Increasing transparency– Encouraging partnership working– Supporting localism

ORR wants to engage with local communities on CP5