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Transport Officials Offer Olive Branch To Rail Investors - Economic Risks Govt

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http://www.telegraph.co.uk/finance/newsbysector/transport/10852984/Transport-officials-offer-olive-branch-to-rail-investors.html

Transport ministers are seeking to end two decades of “tensions” with City investors over Britain’s railways, as they awarded an £8.9bn contract to run Europe’s biggest passenger franchise to a joint venture led by Go-Ahead Group.

Officials at the Department for Transport (DfT) hope the award for the Thameslink, Southern, Great Northern (TSGN) contract - a huge commuter franchise running north to south through central London - will mark a new chapter in relations with investors in rail.

In a rare interview, Peter Wilkinson, who was brought in to the DfT in the wake of the West Coast debacle, to overhaul the way it awards contracts to run Britain’s railways, said the Government wanted to re-build relationships with infrastructure investors.

..

Mr Wilkinson said the Government will now shoulder most of the risk of a potential downturn in the economy, while train operators will largely only have to take risks for factors within their control.

The new model will be tested when the London-to-Scotland East Coast Main Line is, controversially, returned to private hands later this year. The Labour party has raised the prospect of a part re-nationalisation of the railways and potentially allowing a state-owned operator to compete against the private sector for contracts.

I'm relieved we've hired in such an expert to resolve the free market problem of providing trains and getting the confidence back of City investors.

Risking a loss is such old school capitalism. Guaranteed profits is what we need, and when do you want it NOW!!!

Amazing "socialism" is viewed as bad and yet the govt loves subsidising private industry!

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http://www.telegraph.co.uk/finance/newsbysector/transport/10852984/Transport-officials-offer-olive-branch-to-rail-investors.html

I'm relieved we've hired in such an expert to resolve the free market problem of providing trains and getting the confidence back of City investors.

Risking a loss is such old school capitalism. Guaranteed profits is what we need, and when do you want it NOW!!!

Amazing "socialism" is viewed as bad and yet the govt loves subsidising private industry!

Neoliberalism in action........Privatize the profits and socialize the losses.

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