Written Question · S2W-13619 · Session 2
Whether it will provide any information concerning the outcomes of discussions with the Department for Transport (DfT) on the financial asp…
The question
To ask the Scottish Executive whether it will provide any information concerning the outcomes of discussions with the Department for Transport (DfT) on the financial aspects of the UK rail review.
The answer
The Secretary of State for Transportwill transfer to the Scottish Executive funding sufficient to cover all the responsibilitiestransferred to Scottish ministers by virtue of the Railways Bill currently beforethe UK Parliament.
the Scottish Executive will receive a Departmental Expenditure Limit (DEL) transferfrom Department for Transport of £7.5 million to accompany the transfer of the majorityof the Strategic Rail Authority’s functions to the Scottish Executive.
TheExecutive will assume responsibility for specifying (via the Office of Rail Regulation)the network outputs in Scotland. The Scottish Executive will receive a DEL transferfrom Department for Transport of around £300 million to fund Network Rail’s Operation,Maintenance and Renewals activities in Scotland to deliver the network outputs in Scotland. Allocationof relevant income from track access charges from passenger and freight operatorshas been taken into account. This will take effect from 1 April 2006.
Asignificant proportion of this funding relates to a new Scotland elementof Network Rail’s regulatory asset base (RAB). The disagregation of the currentGB RAB into elements for Scotland and for England and Wales will be determined by the Office of Rail Regulation beforethe end of 2005, following joint representations by DfT and the Scottish Executive.The Department for Transport and Scottish Executive will each receive funding preciselysufficient to remunerate their respective RABs. The Scottish Executive and Departmentfor Transport agree that the best estimate that can be made of the RAB for Scotlandin advance of the Office of Rail Regulation’s determination is that it will be veryclose to 10 per cent of the RAB for Great Britain, which is the basis on which theRAB spend above is calculated.
TheExecutive will also assume funding responsibility for rail enhancement projects.To fund rail enhancements the Scottish Executive will receive the following:
ADEL transfer of £17 million per year from 1 April 2006.
Aproportionate increase, via the application of the Barnett Formula, of future increasesin the Department for Transport spending on enhancements in England and Wales.
Apaper has been placed in the Scottish Parliament’s Reference Centre (Bib. number34945) which provides further details.
In addition, this agreement enablesus to announce that full funding is now available from the Executive for phase oneof the Waverley Station redevelopment.
the Scottish Executive will receive a Departmental Expenditure Limit (DEL) transferfrom Department for Transport of £7.5 million to accompany the transfer of the majorityof the Strategic Rail Authority’s functions to the Scottish Executive.
TheExecutive will assume responsibility for specifying (via the Office of Rail Regulation)the network outputs in Scotland. The Scottish Executive will receive a DEL transferfrom Department for Transport of around £300 million to fund Network Rail’s Operation,Maintenance and Renewals activities in Scotland to deliver the network outputs in Scotland. Allocationof relevant income from track access charges from passenger and freight operatorshas been taken into account. This will take effect from 1 April 2006.
Asignificant proportion of this funding relates to a new Scotland elementof Network Rail’s regulatory asset base (RAB). The disagregation of the currentGB RAB into elements for Scotland and for England and Wales will be determined by the Office of Rail Regulation beforethe end of 2005, following joint representations by DfT and the Scottish Executive.The Department for Transport and Scottish Executive will each receive funding preciselysufficient to remunerate their respective RABs. The Scottish Executive and Departmentfor Transport agree that the best estimate that can be made of the RAB for Scotlandin advance of the Office of Rail Regulation’s determination is that it will be veryclose to 10 per cent of the RAB for Great Britain, which is the basis on which theRAB spend above is calculated.
TheExecutive will also assume funding responsibility for rail enhancement projects.To fund rail enhancements the Scottish Executive will receive the following:
ADEL transfer of £17 million per year from 1 April 2006.
Aproportionate increase, via the application of the Barnett Formula, of future increasesin the Department for Transport spending on enhancements in England and Wales.
Apaper has been placed in the Scottish Parliament’s Reference Centre (Bib. number34945) which provides further details.
In addition, this agreement enablesus to announce that full funding is now available from the Executive for phase oneof the Waverley Station redevelopment.
In the Official Report
No contribution in the Official Report cites S2W-13619 by reference.