Rail and bus sectors heavily subsidised by government
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dominic.perryfarbi.co.uk SPENDING FIGURES released by the Department for Transport show the extent to which rail freight is subsidised by the state.
As part of its new culture of openness, the government has begun publishing departmental spending each month, with figures currently available from May to September.
They show that during the fivemonth period, the rail freight industry was helped with subsidies to the tune of £85m, with Freightliner the chief beneficiary, raking in some £5.6m, followed by DB Schenker, which received £1.5m (see table, right). In addition, the ligures reveal that the government is spending around £11 m each month to subsidise the bus industry as it considers it an essential service.
Although the freight transport industry has long been calling for an essential user rebate, this is unlikely given the current government spending restrictions.
However. Geoff Dunning, chief executive of the Road Haulage Association, adds: "We have long been trying to get people to recognise the concept of 'freight buses' and the fact that the truck taking product to the shops is just as important to the local economy as the bus taking people to work.
"If we can't have a subsidy on fuel, at least let us operate more efficiently by using no-car lanes."