To ask the Scottish Executive what were the savings to the tax-payer over the seven year period of the present ScotRail franchise agreement and how much of these savings have been re-invested in the railway industry in Scotland.
When they were let, the 25 passenger rail franchises in Great Britain were designed steadily to reduce the Government's support for passenger rail services. This reduction is currently treated by the UK Treasury as a general saving to the Exchequer. The estimated total value of franchise payments to ScotRail is £1.749 billion for the period 1997-98 - 2003-04. The estimated cumulative reduction of franchise payments for the same period, compared to the amounts which would have been paid had payments continued at the 1997-98 level, will be £0.271 billion. Corresponding reductions are taking place in the other franchises throughout Great Britain. Details of the ScotRail franchise are set out in the table below.
Investment in the railway industry in Scotland and elsewhere in Great Britain is principally a matter for the industry itself. In its 1999 Network Management Statement for Scotland, Railtrack outlined investment of some £2.2 billion over the next ten years. ScotRail is investing around £170 million in new trains that will enter service between now and 2001. Public sector support for passenger rail franchises underwrites almost all of this investment. Rail services are eligible for support from the Scottish Executive Public Transport Fund, totalling £90 million between 1999 and 2002. The Rail Passenger Partnership scheme, for which £105 million is available over the next three years, is administered by the Shadow Strategic Rail Authority on a GB basis.
SCOTRAIL FRANCHISE PAYMENTS 1997-2004 (£000s)YEAR | TOTAL VALUE1 | TOTAL REDUCTIONS2 |
1997-98* | £288,6313 | |
1998-99** | £280,1773 | £8,454 |
1999-2000*** | £264,601 | £24,030 |
2000-01 | £248,096 | £40,535 |
2001-02 | £232,719 | £55,912 |
2002-03 | £220,999 | £67,632 |
2003-04 | £213,859 | £74,772 |
TOTAL | £1,749,082 | £271,335 |
* Feb 1997 prices ** Feb 1998 prices *** 1999 - 2004: Feb 1999 prices
Notes:
1. For Strathclyde PTE-funded services, revenues are paid to SPTE and offset their franchise payments to ScotRail: these revenues are estimated at £309 million for 1997-98 - 2003-04.
2. Reductions are calculated against baseline year 1997-1998.3. The figures for 1997-98 and 1998-99 include incentive payments to ScotRail.