Source · Select Committees · Transport Committee
Recommendation 25
25
Accepted in Part
A three-year grant scheme is not suitable for the maritime sector, which operates on long...
Recommendation
A three-year grant scheme is not suitable for the maritime sector, which operates on long timescales and requires support for capital costs. The Government should reintroduce the Freight Facilities Grant in England and review the Mode Shift Revenue Support Scheme and Waterborne Freight Grants to make sure that they are suitable for the maritime sector and will be effective in achieving modal shift. These funding streams will only realise their maximum benefits, however, if they are not simply used as a way of cutting costs by those cargo ship and bulk carrier operators who use the low-cost crewing model. (Paragraph 134) People
Government Response Summary
The government will commence a review of the Mode Shift Revenue Support Scheme and Waterborne Freight Grant schemes to ensure they are suitable for the maritime sector. They do not plan to reinstate the Freight Facilities Grant in England.
Government Response
Accepted in Part
HM Government
Accepted in Part
The Government partially agrees. The Department for Transport’s Mode Shift Revenue Support Scheme and Waterborne Freight Grant schemes run until 31 March 2025 and 31 March 2026 respectively. A wide-ranging review of these schemes to ensure that they are suitable for the maritime sector will commence soon. The department recognises that the schemes as currently designed are not necessarily serving their intended purpose to support maritime freight, and when the review begins that will be a key part of any redesign. The department has no plans to reinstate the Freight Facilities Grant in England.