Network Rail Privatisation 'on The Table'

[interestrateripoff]

http://www.bbc.co.uk/news/business-34276868

The executive asked to come up with a plan to revive Network Rail's fortunes has said she cannot rule out recommending privatisation.

In an interview with the BBC, Nicola Shaw said that a partial or total sell-off "was absolutely on the table; it can't not be."

Ms Shaw was drafted in by the government after Network Rail's upgrade plans fell apart last summer.

Work to electrify key lines had been dogged by delays and mounting costs.

Ministers paused two of the projects, in the Midlands and across the Pennines, and replaced the chairman, while a number of reviews are carried out.

Ms Shaw, who is the boss of Britain's only high speed line, HS1, was asked to come up with a report before the Budget next spring.

She said there were a whole range of issues that had to be considered and she was keen to hear what people had to say.

Well Railtrack was hugely successful so creating another company to generate profits will undoubtedly solve all the issues....

[choochoo]

I've worked in the railway industry for 20 years, it was a mess during BR and during Railtrack.

BR had no money to spend

Railtrack had money to spend, but it and all the private maintenance companies were more interested in profit.

Full privatisation is NOT the way to go

[DarkHorseWaits-NoMore]

They probably realised that there's some assets they forgot to extract before Corbyn turns it into the People's Railway. Or try to remove the land/track from the company, allowing the rent seekers to lease assets back to the gov't after any future renationalisation. Isn't this what the franchises are planing to do with the trains, even though they were purchased with a near 50% state subsidy. Got to luv the way these illusory free markets work.

[Guest]

They're just trolling Corbyn now.

[Assume The Opposite]

Privatisation worked wonders in my area. Only one train company and they charge some of the highest fares in the UK.

It's cheaper to drive to another town and take a longer route.

There is also one bus company who again, charge expensive fares. It's far cheaper to drive.

So much for competition and competitiveness. Idiots. George must be back to the coke again.

[sikejsudjek]

Loony right wing at it again.

Railtrack was an unmitigated disaster.

[winkie]

I would love to regularly use the train.....I simply can't afford to use the train.....the train is a huge strain many more people are unable to sustain.......

....for a start the station car park charges are beyond belief.....then the tfl cost to reach final destination does not make for happy or friendly calculations in both time, comfort or money.......not a pleasant experience you would wish to write home about......don't brag about it.

Edited September 20, 2015 by winkie

[thewig]

Trains are a horrendous way to travel these days if you are over five foot ten or so.

At least if you're lucky/short enough to be able to cram into a seat you can sit in relative comfort whilst you reflect on your £/mile/minute of life calculations. If however like me you're a lanky fcker you have to ponder these eye watering figures stood in a vestibule next to a leaking toilet.

I detest train travel.

[winkie]

[GeordieAndy]

With all the EU subsidies Spain gets etc I'm pleased we've contributed to giving them a nicer rail network than our own

[Assume The Opposite]

....for a start the station car park charges are beyond belief..

My hometown train station want almost £10 a day for parking. They took away 2x trains to Leicester per hour to only one. It now feels like being in the underground at rush hour.

Wish I would of drove, absolute joke.

Edited September 21, 2015 by Assume The Opposite

[pipllman]

If I had faith that the state had the people and attitude to run it successfully, I would be pleased to have it in state hands

It hasn't

That doesn't mean that privatisation in the models we see today and have seen previously are the answer (they are definitely not), but I think some sort of involvement from the private sector has to be helpful, if structured correctly.

Meanwhile, as you wait for 0646 Virgin train to come and take you, in a manner better suited to cattle heading to the abattoir, to your daily toil, just spare a thought for the erstwhile owner of that train franchise. As he lays on his island's beach under the shade of a coconut tree...

[GeordieAndy]

The East Coast franchise when it went back to state ownership seemed to do ok but no idea if that could be replicated across the country

[nnails]

its one of few things that should be state owened. you cant really share the track and if private companys can make lots of money out of it why cant public sector to.

[pipllman]

The East Coast franchise when it went back to state ownership seemed to do ok but no idea if that could be replicated across the country

it certainly did OK at keeping ticket costs high

I have the misfortune of needing to use it now and then and know from experience that it is cheaper to fly internationally in a nearly new 737-800 for 3 hours to London than it is to sit in a rickety old train for a 2 hour domestic trip into the capital. On board conditions are comparable

[ccc]

I rated the East Coast line.

[pipllman]

I rated the East Coast line.

other than the price, it is good enough

when the new trains come, it will be better

on advance purchase 1st class tickets (York to London for £20 - £30 return), it is stonking

walk up fares are £158.80 std, £283.50 1st

For a car full (4 adults), that is £635.20 or £1,134 for a journey that would use £60 of fuel in a car

That doesn't feel like marvellous value for money to me.

Under the new franchise, Virgin Trains East Coast will receive a public subsidy too (only a small one, of 1.1p per passenger mile, but a subsidy all the same).

[sf-02]

They probably realised that there's some assets they forgot to extract before Corbyn turns it into the People's Railway. Or try to remove the land/track from the company, allowing the rent seekers to lease assets back to the gov't after any future renationalisation. Isn't this what the franchises are planing to do with the trains, even though they were purchased with a near 50% state subsidy.

Almost no franchises own trains. They are owned by leasing companies (many owned by banks) who lease them at high cost. When BR was privatised the rolling stock was sold at very cheap prices to those leasing companies. Many were 20+ years old and long paid for. Ever since, leasing companies have been charging excessive costs for them, year after year. That's one reason for high train fares. No franchise on a 7 year contract won't spend £50m on new trains when they'll get perhaps £10m returns in that time.

Another reason for high costs is everything is so regimented under privatisation that there's no flexibility. Any action needs approval from so many organisations and inefficiency is huge. Lawyers rule with contract alterations needed to move trains from one area to another to deal with high temporary demand, so it doesn't happen.

New trains are financed via expensive bank lending as well. More expensive than govt borrowing outright. This has led to years of delays with some orders, as leasing companies couldn't raise private finance after '08. Others that were ordered will cost large sums, passed onto passengers and taxpayers.

The whole things a mess. BR wasn't great but operated on a pittance, and managed things like 200 mile electrification in the 80s on a third of the cost today mile for mile, after inflation

Edited September 21, 2015 by sf-02

[stormymonday_2011]

One wonders if any new private company will replicate the stunning performance of its predecessor in every sphere from endangering rail users, to stiffing taxpayers and losing money

https://en.m.wikipedia.org/wiki/Railtrack

If it had not been for the remarkable robustness of the old BR Mark 4 Inter City coaches many more people would have died to due to the old privatised Railtracks neglect at Hatfield.

Edited September 22, 2015 by stormymonday_2011

[Guest_growlers_*]

Add rail to housing and makes me wonder if something like what happened in Russia after the fall of communism (oligarchs bought everything) happened in the UK under Thatcher.

[campervanman]

Add rail to housing and makes me wonder if something like what happened in Russia after the fall of communism (oligarchs bought everything) happened in the UK under Thatcher.

The only difference is that the UK sold off everything to foreign oligarchs.

[pipllman]

AIUI a few of the franchises are owned by companies owned by foreign governments: Deutshce Bahn for instance.

So we have state ownership, in a fashion, just not our state!

Same with water and electricity companies too isn't it?

[choochoo]

AIUI a few of the franchises are owned by companies owned by foreign governments: Deutshce Bahn for instance.

So we have state ownership, in a fashion, just not our state!

Same with water and electricity companies too isn't it?

It is, also interesting to note that Osborne has "opened" the bidding on HS2 to Chinese companies before home grown ones.

Does anyone have an example of a British company owning former state assets anywhere in the world?

[pipllman]

National Grid owns some stuff in the US, not sure if that was previously state owned

Shell and BP are likely to own some stuff previously owned by foreign states aren't they?

The other contenders that spring to mind could be BT and Cable & Wireless

I am sure we could collectively dig around and find a few examples. But likely not as many as the other way!

[Parkwell]

I say do it. That or make it all public again. I can't stand this inbetween crap. Private companies profiting while we still sink more and more money into it. Make the whole network fully private with no money from the government and we can truly see how much people like this privatisation.