This report looks at the rail services in Wales, concentrating on intercity services, the award and proposal for the new Wales and Borders franchise and the division of powers between Westminster and Wales. Amongst the issues it highlights are the need for a new high speed link between England and South Wales; the slow speeds of the North Wales Main Line The report also welcomes discussions between the UK Government and the Welsh Assembly on a future Transport Bill for Wales and it recommends powers of guidance over the SRA be included in this Bill.

Reply to the Committee's 3rd report session 2003-04 (HCP 458, ISBN 0215016262)

The Transport Committee broadly welcomes the European Commission's 4th Railway Package but believes it focuses too much on liberalising the railway in domestic markets at the expense of important measures to improve cross-border freight and passenger services. The Committee recommends the UK Government should actively negotiate to ensure: joint working between Network Rail and train operators is not prohibited or unduly restricted; metro and light rail systems are not affected by the proposals to separate infrastructure and service operators; the UK's arrangements for letting train franchises are not challenged. In addition, MPs are concerned about: governance arrangements for Eurotunnel; the maximum annual threshold proposed for rail franchises, which could prevent UK companies bidding for work in other EU countries; and the possibility that the EU may become responsible for specifying the content of public transport plans: these should remain the responsibility of national or local governments.

The Department for Transport is eighteen months into a five-year, £9 billion investment programme to improve rail travel, in particular by increasing the number of passenger places on trains by March 2014. The Department's latest plans show that all the relevant targets will be missed. There will be 15 per cent fewer extra places delivered in London in the morning peak and 33 per cent fewer into other major cities, compared to the numbers the Department stated would be needed just to hold overcrowding at current levels. The Committee is concerned that the failure to meet the targets set will lead to substantial increases in already unacceptable overcrowding levels by 2014 and beyond. Rising demand for rail travel combined with serious cuts in public expenditure make it imperative that the rail industry becomes more efficient, otherwise the passenger will suffer. The Department says that levels of crowding, and ticket prices, depend on policy decisions about the level of government subsidy, but this ignores the scope for efficiency savings to release resources for front line services. The industry's ability to provide a good quality rail service, including acceptable levels of crowding, depends crucially on the efficiency of all players in the rail industry, and of Network Rail in particular. Rail infrastructure costs more in Great Britain than in other countries, and there is a large potential for Network Rail to improve its efficiency. The Office of Rail Regulation should be challenging Network Rail's efficiency at a detailed level.