Rail users call for bigger subsidies
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/ Demands for rail freight costs to be brought into line with road haulage will be made to the House of Commons transport committee this week. More and more operators are being priced off rail.
The Rail Freight Group, which represents 61 rail users and suppliers, will tell the committee that it would be disastrous if Railtrack, the body which will be responsible for the track after privatisation, is forced to cover its costs through user charges.
RGF claims that rail freight users pay 45% toward track costs, while hauliers get away with paying for only 10% of the damage they do to the roads.
The disproportionate prices are said to be taking their toll. Charterail is on the brink of liquidation, partly due to track costs. Creditors have given the company two extra weeks to renegotiate finance and track costs with British Rail.
And last week BP, Shell and Esso announced that they cannot justify the cost of using the West Highland rail freight line from April next year.
RFG will also suggest that freight be given priority prices over passenger services in the Rail Privatisation Bill, for which the Commons transport committee can propose ammendments. "Freight runs at night and does not require peak hour track time," says RFG group secretary Chris Nichols. "And freight does not require the same safety standards as passengers." He believes that the Government should subsidise rail so that it does not operate at an unfair advantage to road transport.