July 2009

The Welsh Assembly Government’s transport budget is weighted in favour of subsidised travel

According to the Ministerial Advisory Group, which is chaired by former Ford executive Richard Parry-Jones and was established in 2006 to advise the Assembly Government on economic policies – a lack of clarity exists between the economic and social objectives in its transport policies.

The group report was published after some AMs accused Minister for the Economy and Transport, Ieuan Wyn Jones, of attempting to block its publication. Earlier this month Mr Jones denied this, saying the report was being timed for release alongside the launch of consultation on the National Transport Plan

The report, although supportive of social inclusion transport policies like subsidised bus routes in deprived areas, said that the level of such funding was putting “severe pressures” on the transport budget.

In the past financial year, £230m went on social inclusion funding, which the report says was more than two-thirds of the Assembly Government’s revenue spending on transport.

The report says: “With limited resources, the current approach is rapidly becoming unaffordable. The group was concerned about whether the subsidies are targeted effectively, given that many recipients do not need subsidised services and some subsidised services are poorly utilised.

“The group considers that there is urgent need for a review to consider how to target public transport subsidies in the most efficient and effective way. This would need to consider whether universal entitlement, for example, in terms of free travel or reduced fares, is the most effective way of getting support to those who need it.”

The group says there is also a need for “greater clarity” in the budgeting process, with a clear differentiation between transport expenditure for social and economic purposes – with priorities for projects within two separate strands of the transport budget.

In rejecting this recommendation, the Welsh Assembly Government said; “Many transport schemes have both economic and social benefits which would make it difficult to classify schemes as either economic or social.

“The Welsh Assembly Government is however reviewing its budget structure to bring it more into line with the strategic priorities identified in the Wales Transport Strategy, which will give a sharper distinction between national and local schemes.”

However, it did accept the need to ensure a more efficient and effective use of transport subsidies. The Assembly Government is reviewing the reimbursement arrangements for its concessionary fare scheme in order to ensure that it is “sustainable”.

The group said that as part of the feasibility study into tidal power in the Severn Estuary there should be an examination of a rail link over any barrage. The recommendation was accepted.

It also calls for ports policy to be devolved to enable the Assembly Government to develop their full economic potential. WAG said it would consider this, but it would require discussions with the UK Government.

The report also calls for consideration to be given to whether rural railway lines might operate more cost-effectively as “community railways”. If not, the group says consideration should be given to replacing socially necessary services with bus services.

In rejecting the recommendation, the Welsh Government said it has “no current plans to close any railway lines and therefore the potential change of status would not arise”.

The report also calls into questions the need for four regional transport consortia in Wales, made up of local authorities in North, Mid, South West and South Wales. It says: “The organisational arrangements for transport are unnecessarily complicated and the regional transport consortia represent an unnecessary tier.

“The Assembly Government should take control of strategic routes into urban areas, as well as all local authority responsibilities for transport planning and delivery.

“The regional transport consortia… have neither the resources nor the skills necessary.”

In its rejection, the Assembly Government said it considered local authorities are best placed to undertake the planning and delivery of local transport.

Transport expert Martin Evans said abolishing the consortia, which have yet to finalise their individuals transport plans, would see Assembly Government officials getting bogged down in the minutia of making decisions on things like “bus routes in Flint”.

He added: “The Government needs to focus on strategic routes and let people come up with individual schemes to make transport in their areas better.”

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