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Rail grants famine

12th April 1986, Page 6
12th April 1986
Page 6
Page 6, 12th April 1986 — Rail grants famine
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Which of the following most accurately describes the problem?

• Cuts in Government funding for Section Eight railway facility grants are likely to force some companies to use road where they had wanted Although there are great differences in forecasts for the bonus it will bring to road, British Rail says only that it is disappointed by the Government cuts, which took effect this month.

But it says that companies wanting Section Eight grants — which allow finance for up to 60 per cent of the costs of rail freight sidings and wagons — now face much more rigorous searching to see that if their projects will meet environmental criteria.

In 1985/86, there was a budget of 27 million for Section Eight grants, although British Rail approved 21 schemes worth around £11 million.

The allowance to transport operators has fallen to 26 million and next year it falls again to 25 million.

Environmental pressure group Transport 2000 says that the forward programme for Section Eight grants may have filled the available cash limit target imposed by the Department of Transport for the next one or two financial years.

It says that in this Government's lifetime no further grant aid applications are likely to be entertained. This can only lead to more lorries on the roads, it says.

But the Freight Transport Association says grants will be awarded in the next few years, but it will be much more difficult to get the grant.

"Only schemes giving best value for money and which fulfill the environmental criteria will have a chance", according to the FTA.


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