2010 Hope for North-East Rail Freight

2.32.38pm UTC (GMT +0000) Wed 27th Feb 2008

A new scheme encouraging the switch of freight from road to rail could be in place by 2010 providing subsidies for freight direct to England, north east MPs have been informed.

Malcolm Bruce and Robert Smith have met with Transport Minister Jim Fitzpatrick to try and ensure that the current rail freight scheme to the North-East is not scrapped

This would replace the scheme currently operating which is in danger of failing because no subsidies are provided to loads going south of the border which most trains require to do.

Liberal Democrat MPs Malcolm Bruce (Gordon) and Robert Smith (West Aberdeen and Kincardineshire) met Transport Minister, Jim Fitzpatrick to press their concerns about the threat to the service.

Staff in the Department made it clear that the existing scheme which requires approval under the EU state aid rules could not be renegotiated but said a new scheme was being planned over the next year and officials would be willing to work with local transport companies to explain the criteria and take account of the North East case for a different approach.

Commenting Malcolm Bruce, MP for Gordon said:

"We're very competitive in terms of our regional products but we're remote in terms of our access to markets; this is partly due to rising fuel costs which makes rail freight more attractive. Local freight operators know that using rail makes environmental sense- we now need the Government to help it make better financial sense too for those businesses I have spoken to in Dyce and beyond."

Robert Smith, MP for West Aberdeen and Kincardineshire added:

"We plan to take this matter further and press the European Commission to allow for changes to the scheme to recognise the distance we are from our markets. I emphasised to the minister the importance of the Government confirming the details of the 2010 scheme as soon as possible so that investors can plan their freight strategy.

"Asda currently benefits from positive publicity from using the rail service link from its depot in Grangemouth to its stores further north such as Portlethen, Bridge of Don, Huntly and Dyce. If it is to continue to make claims that it is environmentally friendly, then it needs to show commitment to this service. Securing a fairer rail environmental freight scheme for 2010 is key to this and we will continue to pursue this in Westminster and Brussels."

ENDS