Thank you for inviting me here today. Passengers have never been more central to our thinking, never more important in influencing the future shape of the Railway.
They need the 'Platform for Progress' that was the sub-text of our second Strategic Plan, and getting performance right is essential if we are to meet passengers' needs in the future. Time and again passengers tell us that reliability is their number one priority.
I recognise the time and effort you all put in on behalf of passengers. The driving force behind what we do is to meet the needs of passengers and freight customers. We are all passenger champions and with your help, we will convert the whole industry into champions. Every day, three million passengers use the Railway - either through choice or necessity - and they expect no more than they are entitled to: a reliable service, with helpful, professional staff from companies who treat passengers as customers- not as a captive market.
Today, we publish the latest edition of National Rail Trends. There are examples of improvement in these figures, which are, of course, welcome. There are real signs of progress, small, steady steps of improvement: London and South East TOCs up 5% in peak; South West Trains up 8% in peak; overall a figure moving slowly but steadily in the right direction compared with the same quarter last year.
But certain areas need real attention and that is exactly what we have done in our May and September timetable changes. Passengers deserve better reliability and we're going to deliver for them - as an industry, working together.
The timetable changes were agreed in partnership with the TOCs and Network Rail. Because we all know, in our bones, that we can and will fix this industry - but not by sitting around doing nothing. Stewart has concerns about the level of consultation over the changes and I understand that; but we had to move quickly and decisively to make a difference for passengers in the May and September timetables. As passenger champions we should never miss a chance to improve performance for our customers and that's what the changes boil down to. Surely we agree on that at least. I am determined that this industry presents itself as fit for purpose - and that starts with its customer’s passengers.
Now- let's talk about these timetable changes. They are not the "axing of services"; nor "swingeing cuts". They are not "the thin end of the wedge" nor "the tip of the iceberg". They do not come with horror movie-type music and they are not X-rated. They are a measured action to improve performance for passengers. To justify this we must prove to passengers that these changes to their timetables are worth their while. Let me say again for the benefit of those beyond this room who do not want to hear: " a measured action to improve performance".
"... It’s a genuine attempt to improve the country's ...rail industry for the benefit of the passenger...the network has been screaming out for a sensible approach for the best part of a decade and it may just have found it..". These are not the words of some railway spin doctor - they're the words of the Editor of the Birmingham Post, whose final sentence in a leader article about the timetable changes said: "...hopefully the ultimate winner will be the passenger".
Indeed, as rail industry expert Barry Doe said in RAIL Magazine, some of the changes are " tremendous benefits", while the package of measures as a whole are "probably almost wholly for the best." Neither Barry or the Birmingham Post have a track record of being shrinking violets if they disagree with something!
So what lies behind these changes? On South West Trains, the aim is simple - to deliver a more robust evening peak service by having trains in the right places at the right time. All of the services we removed were off-peak, on congested parts of the network and were lightly used. They were chosen because they had minimum impact on passengers and their removal will create valuable "fire breaks" to stop one late-running off-peak train impacting on all those following in the evening peak. It will stop the "domino effect" that we all recognise only too well. And we've used the opportunity to create new services. There will now be a fast Fareham to London service taking 22 minutes off the current timing.
On Virgin CrossCountry, the issues were congestion and over-crowding. The changes will deliver extra capacity on key CrossCountry spokes at key times and unblocked congested parts of the routes that should never have got into that state. This will improve the flow and hence the passenger experience.
Yesterday, the British Airports Authority published its latest figures on domestic air travel. The figures show a dramatic 12.7% rise in the number of passengers using domestic flights. Last year over half the population flew at least once. There could not be a clearer indication of the competitive market in which rail operates in certain areas of the country. In our response to this threat we must be professional, we must improve performance and we must, must act for the benefit of passengers. The figures published in National Rail Trends today show us as much - and we are in this together - you, the SRA, TOCs and Network Rail.
We all have a busy year ahead - on behalf of the passenger. So let's be clear about what we're doing and let's get on with it: we are in the business of making the Case for Rail, not the case for cuts. Dr Beeching is history. I am interested in the future.
Key Role for the RPC
So, you are quite right, Stewart to devote time this afternoon to making the Case for Rail. It is the most important thing we will be doing this year, and the most important thing at this moment that you could be focusing on too.
Because as I've said, we cannot do this on our own.
The railway only exists to serve its customers - freight and passenger - and no one is going to listen to any case for further investment or support, unless it is endorsed by its customers - passenger and freight. We can make the case, but you must help us convince Government that passengers will gain from further development of the railway.
It is up to the SRA to provide the data to show how railways are good for the economy and for the environment, how they support regeneration and economic development and reduce traffic congestion and road accidents. It is up to you to show how they benefit passengers and can continue to meet their needs in the future.
This means recognising that a big programme of projects is going forward, acknowledging good service delivery where it is being provided, applauding improvements such as our figures today evidence - but of course challenging the industry in a constructive manner to do better.
Tackling Costs and Performance
And we have to start by looking at this from the taxpayer's perspective. From their perspective the railway is costing more than it did in 1999 and is performing worse. Not much of a basis on which to go back to ask for more money!
That is why I have been urging the industry to get its costs under control and to start looking at what can be delivered at a price we can afford - rather than what the cost of the best technical solution is going to be.
Our timetable changes were about better performance for the passenger. The issue on RPP funding is about money. I was not happy that our budget was cut for 2003/04, but I had to recognise that reality, and use it to demonstrate to Government that the rail industry could be relied upon to manage a budget. The reality is that once we had set aside money for our commitments - franchise payments, Network Rail grants and other contractual commitments - the amount of discretionary funding was very limited in the short term. We have been able to allocate £20m of funding for committed RPP schemes, but we have nothing left over in 2003/04 that would justify acceptance of new applications. And we had to tell sponsors straight away, so that they did not continue to commit money to projects that we cannot take forward next year.
The wider issue is all about getting a grip on costs that have been spiralling upwards. We are making some progress in getting these under control, but nobody believes that tomorrow's railway is going to be cheaper than the one operating before 2000. Some safety and technical standards are higher - and have to be paid for - and legislation such as the Disability Discrimination Act means that addressing accessibility issues is a requirement not an option. The work done with Network Rail is beginning to reveal the size of the backlog of track and signalling renewals - going back many years into the BR era - and this has now to be addressed. And passengers are more discerning and are looking for higher standards.
Our task is to drive down on costs - and we are doing this - but we have to recognise that the costs of making the existing railway work well is going to be higher than had been originally planned. And to expand the system will cost more again.
Making the Case for Rail
An expanded network brings big benefits in terms of:
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Better services and facilities for today's passengers,
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Improving choice,
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Reducing traffic congestion,
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The environment,
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Regeneration and development,
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Reducing social exclusion, and
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Economic development.
But we have to make the case strongly and we cannot assume that there is general acceptance of these substantial external benefits. We have a mission to set this out and help Government make the right decisions when the time comes - particularly as the Government will have to weigh the needs of passengers against spending priorities in other areas of Government policy such as education and health.
The RPC network is in pole position on this. You have strong roots in Scotland, Wales and every region of England. You have good links with user groups within your regions, and often with elected representatives as well. You are well placed to muster the support the railway needs and to spell out its significance for passengers.
Because - make no mistake - we are in the fight of our lives this year. We have to make the Case for Rail, and make it strongly. The external benefits of the railway are not well understood by opinion formers, and the benefits to passengers tend to be crowded out by the day-to-day problems that are regularly aired in every newspaper in the country. We have a mission this year to make clear what those benefits are and the huge benefits the railway brings to the lives of its three million daily passengers - and to the millions more who benefit from freight on rail. And we have to do more than just 'talk the talk'. We have to show, by positive action, that performance is improving, that passengers needs are being better met, and that costs are under control.
Next January we will have made our submission to Government for the 2004 Spending Review. The Case for Rail has to be made well before this, so that the submission is well received, and widely supported through the endorsement of passengers. I am going to devote a lot of time to this over the next nine months - not just in London, but around the country, and I will be meeting each and every committee in turn, having started last month in Glasgow with Mike Lunan and his Committee. This is something really worthwhile to tackle, and I know it is something you will want to support. I look forward to taking this forward with you throughout the rest of this year. In many respects we are knocking at an open door. So many good things are happening. We have got to become more proficient at showing passengers and freight customers and investors and Government what those good things are.
We owe it to passengers the length and breadth of the Railway to deliver a better railway - safe and reliable. But the railway needs to get better before it gets bigger.
If one were needed, today's National Rail Trends is a further wake up call. Let's go to work.
