Liverpool Chamber Acts On Rail Cut Fears

Liverpool Chamber took the lead on producing a letter to the Secretary of State for Transport, Philip Hammond MP emphasising the importance of rail transport.

With many of the Government's austerity plans already announced, the business community recognises that tough decisions and cuts will have to be made. However, the Chamber network understands that the Government intends to review long-term planning and funding for the railways.

This raises concerns among businesses that planned projects could be downsized, along with the possibility that certain projects could be scrapped including electrification, station lengthening and enhancements.

Maresa Molloy, Head of Policy and Information at Liverpool Chamber of Commerce said: "Fast, reliable and high quality transport links are essential in helping businesses deliver a private sector led economic recovery. As the spending review approaches, it is essential that the economic importance of these schemes is recognised. In tackling the national deficit, the Government must be careful not to damage future growth and prosperity."

The letter highlights concerns about those areas of transport investment which are most critical in supporting economic growth:

• Northern Hub is the most critical rail project for the north of England and a national priority, allowing greater connectivity between the cities of the north and with the rest of the country. It will therefore bring significant economic benefits to UK PLC. The scheme has an incredible benefit-cost ratio of 4:1.
• Electrification offers faster services, greater reliability, improved connectivity between areas of employment and economic growth, reduced wear and tear on the network infrastructure and reduced environmental impact - suggest that we need to see electrification implemented if we are to compete commercially with our international counterparts.
• Additional rolling stock is fundamental in delivering the vital capacity enhancements on the rail network. Too many of the UK's major cities are served by out-dated, over-crowded rolling stock, despite many assurances that additional carriages would be forthcoming. The Northern Rail franchise for example, was promised 187 additional carriages but has received less than 20.

Maresa concluded by saying: "Whilst we strongly support essential investment in the Northern Hub, electrification and additional rolling stock, we understand the need to make the railways more efficient. We believe these key infrastructure investments will deliver greater efficiencies and reduce costs."

"Business is the engine of the economy. As we move out of the recession, government must support initiatives that enable the free and easy movement of people and goods. Business will pay its share - through fares, general taxation, and investment - but it is up to the government to ensure that the rail system supports strong labour markets and business growth."

For further information contact:

Pamela Holstein
Press Officer
0151 227 1234 x 2203
M 07725 413485
Pamela.holstein@liverpoolchamber.org.uk