GovNet 4th Annual Transport Conference

Thank you for inviting me here today to what I know is one of the most important transport conferences of the year...and congratulations on bringing together so many expert speakers and panellists, and of course, an experienced, knowledgeable audience, which I find quite daunting on one of my first speeches as a Transport Minister!

I know we have people here from many different areas, with different specialities and interests…but what is so important is that you are all playing a role in building an integrated, sustainable, effective transport system that can support a growing British economy in the future.

Which is exactly why the Government needs to listen to you - the people who plan and deliver transport, the people who maintain the infrastructure and the people who have to make a profit from providing services. But what is equally important is that we all listen to the passengers and travellers who use the transport system.

I'm sure everyone here would agree that without a modern, efficient, sustainable transport network, the country as a whole simply cannot meet its potential, whether that potential is defined in terms of the economy, social inclusion, or the environment.

The transport system plays a crucial role in all these areas. It links people and communities with local jobs and services; provides national communications that are so fundamental to business and trade; and underpins the international hubs that keep the country plugged into the global economy.

With the huge growth in Britain's economy over the last decade, as we've grown more affluent, we're travelling more than ever - and that has put extra pressure on both transport capacity and the environment.

So we need to continue to develop our transport strategy to face the major challenges of the future: rising demand; air quality and climate change; and improving the passenger experience.

Since 1997, this Government has increased spending on transport by more than half in real terms - with public transport receiving an ever-increasing share of the total.

We're committed to sustained levels of investment over the long-term - but it's the way that money is spent that will determine how effective our transport network is.

At the end of last year, the Stern and Eddington reports highlighted the multi-faceted approaches needed to meet the huge challenges ahead.

As I have no doubt many of you will know, Sir Rod Eddington said transport policy should reflect the economic and structural changes that are shaping our transport needs - and highlighted  three strategic economic priorities – city catchments; inter-urban corridors; and international gateways.

He proposed that we adopt the right policy mix to meet economic and environmental goals, and deliver sustained and targeted infrastructure investment.

At the Department for Transport we are close to finalising our detailed response to Eddington, which will be published in the coming weeks. We will set out our broad strategic priorities for transport over the long-term.

It's obviously important we think across transport modes - and think beyond traditional forms of public sector investment - drawing in greater private sector investment funding, for example, where we can. Our strategy needs to enable the transport industry to innovate, using new technology. And we need to help create transport options - so people can change their travel behaviour.

The strategy will also respond to Stern - clearly addressing transport's role in reducing carbon emissions across the economy.

Just as we need to plan across the broad range of transport modes, so we need to deliver better transport at local, national and international levels.

As a Government we are committed to greater devolution and community empowerment to improve local transport.

For example, the Draft Local Transport Bill would give local government greater flexibility to plan and deliver better transport - and in particular, to improve bus services.

That flexibility is vital.

Since I was appointed as a Transport Minister in the summer I have been visiting the English regions to discuss directly with people at regional level - and it's good to see some of you here today - the challenges and opportunities people are facing, but also to consult on the Draft Local Transport Bill. I know from my visits to local authorities and passenger transport groups around the country, there are lots of excellent examples out there which can help tackle specific transport issues, from people who have detailed local knowledge.

I believe that proposals in the Draft Bill to give local authorities strengthened powers to improve particularly bus services will certainly benefit communities. Where councils are working closely with bus operators to put passengers first -  in places like Brighton and Norwich - both of which I saw for myself - and Cambridge which I am about to visit - patronage can rise rapidly if there is that close co-operation.

Central government is not in the best position to decide which bus services will work most effectively at local level.

But what we do have and we need to make sure we exercise properly is a key strategic role in sharing best practice and setting a strategic agenda that allows innovative policies to take root and grow at local level.

For example, the Transport Innovation Fund provides a great example of how we can make a positive impact in developing new ideas on local transport.

The Fund is forecast to grow from £290 million in 2008-2009 to over £2 billion by 2014-2015.

Of this, up to £200 million a year will be available to fund demand management schemes to tackle congestion - based on local authorities developing suitable packages.

Colleagues at the Department have already started reviewing the first bid from Manchester.

Overall, what we obviously need to concentrate on is what works. To deliver solutions tailored to local needs.

Local road pricing where that's the right solution…

… targeted investment and improvements where they work best.

In each case, we need to encourage local innovation - innovation that can change the way we travel.

I know that this sometimes involves difficult, some might say brave, decisions, but I also believe that because those decisions make a real difference to people's lives, people can really appreciate the fact that an effort has been made to improve something most people do every day…ie travel.

But we also need to address what role government can play in encouraging sustainable travel - which is exactly what our Smarter Choices programme is already doing.

By working with local authorities, we are trialling the Sustainable Travel Towns scheme in Darlington, Peterborough and Worcester. Local people have been encouraged to consider alternatives to their normal routine - and find out how leaving the car at home can cut their travel costs and has the added advantage of people becoming healthier.

The results we’ve seen so far are very encouraging.

Over the first half of the scheme, each of the three trialled towns saw traffic levels fall by more than 10% among those people targeted.

Cycling in Darlington rose by 79%, and public transport use was up 14%.

In Peterborough, cycling went up by a quarter, while public transport use rose 13%.

And in Worcester, cycling increased more than a third, while public transport use over the same period grew by 22%.

These are impressive figures and show, I believe, that smarter travel choices on a local scale can help us meet wider environmental objectives.

We are funding many other programmes that promote less polluting forms of transport.

That’s why, for example, we have doubled the budget for Cycling England, and why we are investing over £100 million to support the Travelling to School initiative.

This is a very important way of reaching the younger generation, promoting new behaviour and values of sustainability, and opening young minds to the possibilities of sustainable transport in the future.

Of course, supporting local initiatives is one thing, but we also need to back that up with significant investment elsewhere.

That means investing in our railways… in our airports… on our roads… and in the maritime sector as well – all with the goal of supporting a growing economy with a sustainable, safe, efficient transport network.

Today, we have the fastest growing railway in Europe.

In the July White Paper we set out our plans to increase capacity to meet demand growth of 20% over the next seven years. Potentially, we could double capacity over the next 30 years.

The White Paper is designed to put passengers first - with more carriages, better trains, modern stations, and a safer, more reliable railway.

Elsewhere, the aviation sector is growing rapidly.

As a result, we are working with stakeholders to build capacity and upgrade passenger facilities at airports as we outlined in the Air Transport White Paper. But let's be clear - growth needs to be sustainable and a balance has to be struck between aviation's economic importance and its environmental impact.

And so we will continue to lead international negotiations to reduce aviation emissions - in particular by including aviation in an EU emissions trading scheme.

Elsewhere, our major trunk road and motorway network is benefiting from Government investment of £1.9 billion in the three-year funding period up to 2007/2008 - investment that will support our economy. But our priority at every level is to make the most out of existing capacity - and to make sure environmental considerations are at the forefront of any road development.

And in the maritime sector, we are working closely with ports, freight and ferry companies to meet the growth in business they are witnessing each year.

This is a big investment in the future. But in each case, sustainable thinking is being hard-wired into the solutions that we are pursuing.

So our main objectives are very clear: A transport system that supports a strong economy; that puts the passenger first; and that meets our environmental objectives.

And a real message I certainly got from my discussions around the country was a strong desire to better improve integration.

But it is only by learning from those who are delivering better transport, and listening to the experiences of those who travel, that we will achieve these goals - and deliver the efficient, integrated, sustainable, safe transport network that Britain deserves.

That will benefit the economy, the environment and the quality of life for everyone in the UK. I think it's a goal worth aiming for and I hope that your discussions today will help us all to achieve it.

Thank-you

(This speech represented existing departmental policy but the words may not have been the same as those used by the Minister.)