22 March 2011
Rail and sea freight fund massively over-subscribed
Industry interest in Freight Facilities Grants is ten times current budget
Transform Scotland [1] and the Rail Freight Group [2] have today (Tuesday 22nd) welcomed the news that the grant requirement of recent Notes of Interest in applying for rail and sea Freight Facilities Grants exceeds the current 2011-12 budget by some £18m.
The answer to a Parliamentary Question from Patrick Harvie MSP to Scottish Government transport minister Keith Brown MSP has identified that 19 notes of interest for Freight Facilities Grants recently submitted to the Scottish Government total over £20 million in potential grant value. The current FFG budget for the year 2011-12 is £2m, as agreed in the recent Scottish Budget. [3]
The answer to an earlier Parliamentary Question by Cathy Peattie MSP [4] revealed that just 8 of the 19 potential projects advised to the Government could be completed in the year 2011-12, and these would require FFG assistance of £5.75m - £3.75m more than the current budget allocation.
Colin Howden, Director of Transform Scotland, said:
"This shows that we were right to fight for the retention of the Freight Facilities Grants in the Scottish Budget. As we said when the government initially decided to cancel the fund, there is clearly huge demand out there for schemes to get freight off the roads and back on to rail or sea."
David Spaven, Scottish Representative of the Rail Freight Group, said:
"This level of demand for FFG assistance demonstrates that a more substantial budget is needed than the £2m allocated for 2011-12. Companies who cannot realistically complete rail works within a single financial year also need early assurance that the scheme will continue in 2012-13 with a sensible budget to allow Scotland to get the economic and environmental benefits of shifting freight on to trains and ships."
Interest in FFGs has proven to be particularly strong in the Highlands & Islands, with 10 of the 19 potential projects coming from that area.
ENDS
Notes to Editors
[1] Transform Scotland
Transform Scotland is the national sustainable transport alliance, bringing together rail, bus and shipping operators, local authorities, national environment and conservation groups, businesses and local transport groups - see <http://www.transformscotland.org.uk/members.aspx> for details.
[2] Rail Freight Group
RFG has over 150 member companies, ranging from Maersk, the world's largest container shipping line, to high street retailer, Marks & Spencer. Our members include customers, logistics providers, suppliers, terminal operators, ports and freight train operating companies. See <http://www.rfg.org.uk/about/> for details.
[3] Scottish Parliament written answer S3W-40601, 21 March 2011
Patrick Harvie (Glasgow) (Green): To ask the Scottish Executive , with regard to the invitation to submit notes of interest setting out funding requirements under the 2011-12 Freight Facilities Grant scheme, what the total capital cost of all projects advised by rail and by water is; what the total minimum value of Freight Facilities Grant support indicated as required is; what the total annual value of Mode Shift Revenue Support and Waterborne Freight Grant sought is, and how many projects have submitted notes of interest, broken down by regional transport partnership area.
(S3W-40601)
Mr Keith Brown MSP :
Of those notes of interest which identified costs the capital cost of the rail projects was between £19.1m and £22.6m and that of the water projects was £17.2m. The total minimum level of Freight Facilities Grant support identified was between £20.8m and £22.5m. The note of interest form did not request information on the amount of Waterborne Freight Grant and Mode Shift Revenue Support that would be sought.
The breakdown of the 19 eligible notes of interest by Regional Transport Partnership area is as follows: HITRANS - 10, SEStran - 4, SPT - 2 Tactran - 2 and Nestrans – 1.
[4] Parliamentary question from Cathy Peattie MSP.
See <http://www.scottish.parliament.uk/apps2/business/orsearch/ReportView.aspx?r=6175&mode=html>.
END OF NEWS RELEASE