Row over rail subsidies
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• Companies switching freight from road to rail will soon qualify for an increased subsidy from 38p to 50p a mile — but an expected announcement by the Transport Minister has been delayed by a row between Government departments.
The Department of Transport has been considering proposals from the Freight Transport Association to widen the scope of Section 8 subsidies, which can also be used for up to 50% of the cost of building private rail freight terminals.
But the Department of the Environment and the Scottish and Welsh offices are worried that the DTp is trying to dilute the environmental impact of the FTA proposals, According to one industry source they have "ganged up on the DTp" to persuade it to strengthen its Green commitment.
The DTp is reluctant to endorse proposals which attack the environmental impact of Britain's road network, but the FTA says it is disappointed that Transport Minister Roger Freeman will be unable to announce changes at its railfreight conference this week.
"We want to widen Section 8 generally to take into account factors such as congestion," says FTA distribution coordinator David Mitchell. "The principal benefits would be domestic movements but, with the opening of the Channel Tunnel, there would also be an international impact."
The FTA proposals were put forward 18 months ago and arose, partly out of a seminar hosted by environmental group Transport 2000, which was attended by the DTp and the Confederation of British Industries.
The scheme allows money to companies who take lorries off congested local roads or "areas of outstanding natural beauty", but grants are harder to claim if lorries are taken off motorways, The FTA wants them extended to cover intermodal transport.
The scrapping of Speedlink (CM 20 December-2 January) has also caused problems for British Rail with customers who invested in private rail sidings to use the network. Some are expected to seek compensation from Railfreight Distribution.
Transport 2000 hopes the delay in improving Section 8 will result in a better scheme. "Our seminar was 21/2 years ago", says spokesman Stephen Joseph, "but as Government departments go this delay is par for the course. We hope that an improved Section 8, combined with the effect of speed limiters legislation, will encourage companies more to use rail."