http://news.bbc.co.uk/2/hi/uk_news/2577413.stm

Sunday, 15 December, 2002, 13:38 GMT

New rail cuts planned

Increased passenger numbers was a major goal
Rail services could be cut as much as 10% and
government targets to increase passenger numbers
drastically reduced, it has been reported.

There will also be delays in vital maintenance
programmes as the government attempts to reduce
funding, the Observer reported.

Poor maintenance was blamed for
the Hatfield and Potters Bar crashes,
which claimed a total of 11 lives.

The news will generate
criticism for the government
so soon after the
announcement of extended
roadbuilding, and prompt
accusations it is abandoning
its integrated transport
policy.

The newspaper said the government was telling train
operators to prepare plans to run their services with
20% less state subsidy.

This would wreck targets to increase passenger numbers
by 50% and rail freight by 80% by 2010.

Increasing passenger numbers was seen as one of the
few achievements of rail privatisation.

But now 3,500 services face the axe from the summer
timetable in June onwards, at a time when the
government is planning to spend £2bn on road
widening programmes.

Strategic Rail Authority chairman Richard Bowker
recently warned rail projects could be scaled back
because of rising costs.

He told the Observer bidders for new franchises were
being told to submit plans based on 20% less funding.

Cost base

"We have asked them to look at reductions in cost but
we have not made any decisions about anything.

"There is still absolute total commitment to the
railways. But if the cost base continues to go up some
projects are going to become less value for money than
others - we are looking at priorities and options."

The Observer said a source had told the newspaper the
only way funding cuts could be accommodated was by
fewer trains, depots and staff.

Peak time commuter services and long distance
business services will be among those affected