Supporting the local economy is vital – Rail Improvement Plans for South West
News that a detailed plan has been hatched to spend £1.2bn on improving rail networks in the South West is very welcome, especially given our company’s convenient location in Saltash. As a supplier of long standing to Network Rail, RSP would appear well placed to be a beneficiary if the proposals contained in the report ever gain official approval.
For the purposes of perspective, the authors of the report – Lord Berkeley and Michael Byng – point out that, substantial as their suggested figure may seem, it still represents less than 1% of the cost of HS2, the ambitious project to create a rail superhighway in the Midlands and North of the country. The argument runs that a relatively modest outlay in the South West would help rebalance the economy in the UK and bring huge benefits to the region. That would be an understatement.
Original cost estimates from Network Rail in 2010 suggested a total outlay for HS2 of up to £36bn. This figure was revised earlier this year to £88.7bn and has already been superseded by a subsequent estimate that the final bill could reach £106bn. Added to which, the first phase of HS2 is now not expected to open until 2028-31 compared to the original target date of end-2026.
The important lesson here is that any money allocated to the South West (presumably in the hands of Network Rail) needs to be spent without delay and with a healthy portion of the contract work awarded to local firms in the supply chain. In other words, improve rail services, but make sure the local economy benefits as part of the process.
The plan, which has recently been sent to ministers and local authorities for discussion, involves seven detailed projects, involving both upgrades and the re-opening of lines previously shut down. Lord Berkeley argues that the plan will open up the South West for business and build “on the local successes in Cornwall of more frequent services which not only enable easier commuting to schools, colleges or work, but also contribute to the Government’s zero carbon agenda”.
Perhaps I’m biased, but it sounds like a bargain to me. The only proviso I would make is that, if the proposals are given the green light, Network Rail is reminded of its charter to use local suppliers wherever possible.
#SouthWestRailImprovements #HS2
By Angus Dent – Chairman of RSP