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Details of a new approach to reducing the impact of freight transport on the...
Details of a new approach to reducing the impact of freight transport on the

environment and congestion and to improve safety* were announced by transport minister Tony McNulty today.

The government set out last July, in its White Paper The Future of

Transport, its intention to start administering grants to focus more

on the overall objectives of reducing congestion, pollution and

accidents, rather than promoting individual modes. Under the new

arrangements it will:

* Merge the water freight grants and sustainable road haulage budget

into a single pot from April 2005.

* From April 2007 extend the single pot to include rail freight

grants including Freight Facilities Grant. Subject to the passage of

the Railways Bill, the administration of rail and water freight

grants will be brought together in to a single unit.

* Prioritise schemes that offer the best value for money in terms of

their impact on the environment, safety and congestion.

* Set a minimum value for money threshold whereby every pound spent

on grants will 'buy' benefits valued at£1.50 or more.

* In parallel, use funding from the Aggregate Levy Sustainability

Fund to minimise the transport impacts of aggregates movements.

Taking 2005-06 and 2006-07 together, a total of£50.4m will be

available for rail freight grants and£19.2m for water and

road freight schemes. The rail figures include an additional£2m

available to support new applications. In 2007-08, when rail freight

grants are incorporated into the new arrangements, the total budget

for all modes has been provisionally set at£22.6m.

Mr McNulty said:

'Current freight programmes have separate budgets and are

administered separately even though they all have the same objective.

By bringing these programmes together into one funding pot we can

focus on the overall aim of promoting cleaner, safer freight

transport that does not add to congestion.

These new arrangements will provide better value for money for the

taxpayer, and will ensure that the additional funding announced today

to support the freight industry brings real benefits for the

environment and the economy.'


1. Full details are available here.

2. The Aggregates Levy reduces demand for primary aggregates by

increasing their cost and makes the use of recycled and secondary

materials more viable; but it does not tackle the environmental

impacts directly. The ALSF uses revenue from the Aggregates Levy to

address those environmental impacts. Roughly£300m per year is raised

by the Aggregates Levy and£35m per year is channelled into the Fund

in the UK (£29.3m in England).

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