Back on track - Network Rail's long overdue "devolution" to Wales

Network Rail, the company responsible for rail infrastructure in England, Scotland and Wales, has finally created a new all-Wales division. They announced the move many months ago off the back of the Department for Transport's McNulty Report, which suggested "devolution and decentralisation" to improve efficiency. This week, the First Minister formally launched their new operation near Cardiff Central station.

Why is this such an important development?

Railways have been partially devolved to the Assembly since 2005. Network Rail decisions - like those relating to station refurbishments or other major railway improvements - were still made on an EnglandandWales basis. The Assembly did have some influence over the railways, such as funding the Arriva Trains franchise and providing money to "improve services."

In all honesty, it was a bit of a dog's dinner. The Third Assembly's Enterprise & Learning Committee report into future railway infrastructure in Wales found:

• Stations like Cardiff Central were not being prioritised in a way that acknowledged their "major role" or passenger numbers.
• Network Rail had no idea how much they actually spent on railways in Wales - only estimates.
• The UK Government thought it was "unacceptable" to devolve Network Rail to Wales because too many services shared infrastructure and cross-border services. Transport Scotland didn't see this as an issue in their own arrangement.
• The majority of witnesses to the inquiry supported further devolution of the railways to the Assembly.
• Scotland was able to spend "several hundred million pounds" on rail infrastructure because of it's block grant allocation and rail devolution, Wales "didn't have that luxury".

Now that Network Rail will make decisions in Wales, it gives the Assembly much greater clout in prioritising schemes. It also means that there is - at last - a joined up system for running Welsh railway infrastructure. Hopefully, it'll lead to many big improvements in the next few years a lot quicker than they otherwise would have on an EnglandandWales basis such as:

• Station improvements to Cardiff Central and Queen Street Stations
• Electrification of the south Wales main line to Swansea
• Possible future electrification of the Valley Lines and north wales mainline
• Capacity improvements around Cardiff & Newport
• A rail service between Ebbw Vale and Newport
• Reopening the Aberdare-Hirwaun line and line from Gaerwen to Llangefni (or Amlwch) to passengers
• Redoubling of track between Llanelli and Swansea
• More frequent services in west Wales

There is, however, a big catch. Although the decision making is now devolved, the Network Rail budget isn't, and currently, around 3% of Network Rail funding is spent on the Welsh rail network (which includes a chunk of England's) - around 2% lower than the Welsh UK population share. Scotland, however, does receive it's population share, and has used the money to carry out some significant improvements to the Scottish rail network.

Part of that "missing" 2% will be used by the UK Government to fund projects like Crossrail, Reading Station redevelopment and electrifying rail lines to Blackpool (while electification to Swansea is moving at a slow pace).

I believe that this could be because within EnglandandWales funding has been dependant on the length on the network/route miles and not on passenger numbers or national/regional population share. With Network Rail devolved, the next piece in the puzzle is to devolve the budget in line with Scotland.

Welsh railways are back on track perhaps, but not going anywhere fast just yet.