Dip delays rail freight subsidies
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• The Government has postponed improvements to the Section 8 subsidy for rail freight operations because it wants to "get it right", Transport Minister Roger Freeman said last week. But he promised an announcement soon.
Speaking at the recent Freight Transport Association's rail freight conference, Freeman said: "The Government understands customers' difficulties with the closure of Speedlink." He stressed its commitment to rail-freight.
"We want to move as much freight as possible by rail and get it off the road," said Freeman. "It is vital that rail has a fair crack of the whip."
Last week CM reported that Section 8 subsidy is likely to increase from 38p to 50p a mile on journeys switched from road to rail, in line with FTA recommendations, backed by Transport 2000 and other pressure groups.
FrA president Tony Stanton complained that "the industry's confidence in Railfreight has been shaken by last year's announcement of the withdrawal of the Speedlink service, and must be urgently reestablished". Long-term stability is needed if freight customers are to invest in Railfreight, he added: "We are seeing frustrated Speedlink customers with great regrets and no options, writing off rail investment and switching to road."
Stanton believes they are unlikely to go back to rail "because it would mean facing fresh, heavy start-up costs."