THE Association of Train Operating Companies is calling for a major review of rail spending plans, including the projects which are included in Network Rail's 2009-2014 Control Period. It is also warning that project deferrals or even cancellations cannot be ruled out.

ATOC said there should be a ‘swift and rigorous’ review of existing rail investment commitments 'to ensure that money is being spent in the best interests of passengers and taxpayers and in a way that helps to put the railways on a stable long-term footing'.

The Association has written to rail minister Theresa Villiers urging a review of all plans, including the £8bn which was to be invested by Network Rail in improving the network between now and 2014.

It said that 'all projects should be judged more closely on whether they will improve services for customers and increase revenue by attracting extra passengers to the railway, thereby reducing the cost to the taxpayer. The priority and viability of every scheme should be decided upon on the basis of a strong business case. Projects that do not measure favourably against this should be the first in line for deferral or cuts'.

The letter also points out that smaller, targeted projects that focus on specific pinch points can often produce tangible benefits for passengers and provide good value for money.

ATOC is proposing that train companies join the Department for Transport and Network Rail in jointly reviewing infrastructure projects, with a view to completing this in good time for the Spending Review in the Autumn. It also looks forward to the operators being part of the reappraisal of rolling stock procurement which Philip Hammond, the Transport Secretary, announced earlier this month.

ATOC chief executive Michael Roberts said: “Investment in Britain’s growing railway is vital if the current record levels of performance and customer satisfaction are to keep pace with demand which is expected to double in the next 20 years.

“But the cost of the railways to the taxpayer is too high, particularly at a time when public spending is under such severe pressure. It is our shared responsibility, across the industry and with the Government, to put rail on a more stable and sustainable footing.

“Train companies still believe firmly that the system of planning rail finance and projects over multiple-year periods is vital to sound long-term planning. But the unprecedented situation in the public finances means that, on balance, a swift and rigorous review is in the best interests of taxpayers, passengers and the railway.

“Train companies believe that they can work with their partners to give greater priority to projects with strong commercial justification and to review the scope of projects to improve their rate of return. Schemes that cannot demonstrate significant benefits to passengers and taxpayers should be the first in line for deferral or cuts."

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