1 Sector change - Regulatory futures Anna Walker ACoRP Conference 2 November 2011

2 A time of change… Much to be proud of: –passenger growth –improved performance/safety Government committed to investment in the rail infrastructure Industry going through reform: –Network Rail devolving to routes Alliancing/partnerships –Franchise reform Longer, less specified Broader Government agenda: –Transparency - Economic growth –Localism - Linking communities –Sustainability

3 A time of challenge Broader economic climate Success in railways – a high cost to taxpayers and passengers McNulty report – value for money challenge Step-change in efficiency in order to sustain support for continuing high levels of investment and subsidy Broader economic climate No room for compromise on safety

4 What community rail has delivered 30 designated community rail lines or services Active engagement of local communities, businesses and others Development and promotion of local rail services Improvements to the railway environment: –Bringing redundant land and property back into use –Provision of additional amenities

5 The challenges for community rail Uncertainty over funding –Local authority support reduced –Regional bodies wound up Dependent on often small band of dedicated volunteers Operating at the margins of large network Reliant on partnerships with Network Rail and train operators

6 Potential opportunities: Industry reform Network Rail –Devolving decision making –New Route Directors –Partnership working with train operators –Comparative information on routes Franchise reform –Longer less specified franchises –Greater flexibility to shape services around needs of customers –More investment from train operators

7 Potential opportunities: localism Government commitment to: –Lifting burden of bureaucracy –Empowering communities to do things their way –Increase local control of public finance –Strengthen accountability to local people Government consultation paper shortly on localism in rail Tricky issues –Who is the funder? –Devolution to whom? –Spotlight on public subsidy

8 Potential opportunities: periodic review - CP5 Increasing transparency –Of costs and subsidy –More data at major route level –Key enabler for more local decision making Incentivising and enabling more partnership working Focus on delivering for customers Sector-wide performance measures Are you sufficiently involved? Localism incentives in PR13?

9 Summing up Community rail movement: –Has long history –Can be proud of its achievements Government support –ACoRP –Localism agenda Regulation –Increasing transparency –Encouraging partnership working –Supporting localism ORR wants to engage with local communities on CP5