'We share the Commission's objective of improving the quality and efficiency of rail services, so that rail can play an increased role in the transport system, and help tackle road congestion and pollution. There is much that we can welcome in these new proposals.

The proposed completion of liberalisation of rail freight would provide new opportunities for UK firms in continental markets and increase competition in those countries that still restrict access, reducing costs and improving services to customers. Better integration of Europe's railways through harmonised technical rules is also something we can welcome in principle. But harmonisation can impose costs too, so we will need to be sure that the benefits of the proposed measures are clear and fully justify any costs. This consultation exercise will help us to identify where we should be most supportive, and most cautious, in the forthcoming negotiations.

' The proposals cover:

· Accelerated completion of the liberalisation of the rail freight market, so that freight train operators have freedom to operate domestic or international services anywhere in the EU;
· Further measures to promote the interoperability of EU rail systems - i.e. the use of common technical specifications to promote greater competition and economies of scale in the railway supply industry and to make it easier for trains to operate across different national networks;
· A harmonised system of railway safety regulation based on national safety authorities, separate national accident investigation bodies, and common safety methods and targets;
·The creation of a European Rail Agency as a technical body staffed from the rail industry to co-ordinate work on developing proposals for harmonised technical specifications and safety rules - for formal decision by the Commission and Member States.
· A mandate for the European Community to become a party to the Convention on International Carriage by Rail (COTIF) - a long standing intergovernmental agreement between forty countries, which facilitates international freight and passenger rail traffic.

The Commission's Communication also indicates that they will bring forward further measures to improve the quality of freight and passenger services over the next three years.
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