The Empire strikes back, sort of!

This from Ithuriel...

In an article in the Sunday Express, Stagecoach CEO, Martin Griffiths, launched his Chairmanship of the RDG (What that? Ed) with a fighting article headed: 'Railways are still on track'.

No, it wasn't a  riposte to busway conversions, but a paen to the newly nationalised railway (Shurely 'triumph of Privatisation'? Ed)

Martin showed his Finance Director background with this statistical claim:

"Train companies last year switched from being net recipients of Government support to net contributors. Overall industry subsidy per journey is lower than or the same as in six of the 12 years leading up to privatisation."

Good news indeed!

But what's this?

Note that Mr Griffiths is comparing 'now' (after 20 years of privatisation) with 12 years then, conveniently ignoring the post Railtrack years when subsidy was indeed four to five times BR at its best (Where is this going? Ed).  

Griffith's comparison is also based on passenger journeys not passenger kilometers. 

Since Clapham Junction to Waterloo and Kings Cross to Aberdeen are both 'journeys', the average cost measure is meaningless (Got you! Ed). 

So what about comparing cost per passenger kilometre?

In 1982, before the revival of BR's fortunes under Sir Bob Reid, the subsidy per passenger kilometre at today's prices was 8.1p. 

In 2006-07, when subsidy peaked at £6.3 billion - three times BR's 1982 subsidy, this equated to 15.8 p per passenger km!

Nice try.  But sadly, no cigar!

Update: This from The Horn of Plenty...

Shurely it was Sir Robert Reid who revived BR's fortunes, paving the way for Shell's Sir Bob later?

On a more serious point, do we honestly think that we were at a sustainable level of spend in 1982, the era before Clapham, Hidden, Hatfield, DDA, Interoperability, Climate Change Levy, Pension Protection Levy, TPWS, GSMR, etc...?

Hopefully we are now where Sir Robert may have wished us to be, with the Government treating:

"... the network according to its importance to the nation rather than its financial value..."

Where "...safety must be 'top of the agenda': the only answer [is] high standards, efficient systems and constant vigilance."

Does anyone on today's railway really believe that our old nationalised industry could have delivered this?

Eurostar sale - another test for 'risk transfer'

So. Government intends to sell its 40% stake in Eurostar. 

Danny Alexander said the following on BBC Radio 4's Today programme this morning (courtesy of the Guardian):

"We've set out already, we've started to sell off some of the student loan book, that would be another area, there are assets owned by the London and Continental Railways, things that a lot of people wouldn't have thought the state owned in the first place.

"What I'm setting out today is an ambition with some examples of things we think we could sell. Clearly no final decisions have been made about any of those assets, but clearly the point is that where government owns assets that could be better managed in the private sector, could be more efficiently managed in the private sector and where we can get money in to reinvest in vital infrastructure projects that get this country moving, that support the long-term economic growth of this country, they can back up the vote of confidence that we're seeing from the private sector." 

Quite so.

No doubt this announcement came as little surprise to London and Continental, what with government being all joined up and all!

No matter.

Eye expects there will be vast queues of private investors keen to take on LCR's stake in Eurostar... as well as the obligations of the 1987 Rail Usage Contract, which remains in force till 2052:

After privatisation, Eurostar and English Welsh and Scottish Railway assumed British Rail's preferences and liabilities under the contract through 'back-to-back' agreements, which account for 50% of Eurotunnel's capacity. The contract guarantees a minimum level of income for Eurotunnel, which helped it meet its liabilities for construction costs and now also serves as the basis for how access charges are levied on all railway undertakings using the Channel Tunnel. 

Joined up government indeed. 

UPDATE: This from Steve Strong...

Well if they do succeed in flogging off the government stake in Eurostar it will save some embarrassment on the East Coast franchise competition.

What with DfT planning to boot off today's state owned operator and possibly replace it with Eurostar, which is errr... another state owned operator!
 

Hammond Eggs - Sauce for the goose

This from the Yorkshire Post:

Shadow Transport Minister Lilian Greenwood said Ministers are so keen to re-privatise the route linking London, Doncaster, Wakefield, Leeds, York and Edinburgh that they redacted a prospectus for the proposed sell-off to make the line seem less successful than it actually is.

Happily Stephen Hammond was able to mount a spirited defence of privatisation:

He claimed Labour's position on the East Coast franchise was driven by “dogma”.

Errr...

McLoughlin makes extra-ordinary confession!

Good news for fans of Openness and Transparency!

At last night's ATOC sponsored wake for franchising Patrick McLoughlin made the following confession...

As a junior transport minister in the 1980s, I remember British Rail.
Underinvestment in tracks and trains.
Poor reliability.
Managers whose good ideas were too often stifled by a lack of cash…

Guilty as charged. Send him down! 

UPDATE: This from Captain Deltic... 

So when was Patrick McLoughlin a junior transport minister?

From 1989 to 1992.

Gosh they were grim times for investment. 

All we had was more electrification than under any government, including the East Coast Main Line with a brand new fleet of 140 mile/h IC225s that delivered a London - Edinburgh run in just 3hr 29 min. 

Plus total route modernisation of Chiltern, the re-equipment of Regional Railways with new trains - frequent DMUs replacing infrequent loco hauled services. Oh, and a new fleet of freight locos.

And what about the upgrading of the Kent lines to take the new state of the art Networkers, not to mention... (con't p94)

Oi Deltic, that's quite enough moaning about the bad old days! Ed

ATOC to hold wake for franchising?

Good news for fans of black armbands and dirges!

ATOC is hosting a tres elegant soiree in July to celebrate the 20th anniversary of the Railways Act, the piece of legislation that paved the way for, in Chris Grayling's words, "a flawed privitisation".

Quite so.

The timing could not be better with the next party of government nudging ever closer to renationalising the railways, according to an article today by Mark Ferguson on Labour List.

No matter!

No doubt those attending the ATOC bun fight, including the Secretary of State for Transport, will appreciate the deep irony of holding it in the former home of the Greater London Council (now the Marriott County Hall).

Of course that was another piece of Tory abolition legislation that has subsequently been reversed.

More amusing still is the fact that the successors to the GLC, the Mayor and GLA, are absolutely adamant that Concessions, rather than Franchises, are the way forward for rail services; unless of course you include London Underground which remains resolutely state-owned.

Perhaps ATOC realises the game is up?

Rocking Norman deeply confused - Official

Wise words from Norman Baker in today's Metro...

The railways would have been better off in state hands than under the regime introduced in the 1990s, Norman Baker said.

But Mr Baker stressed nationalising railways now would be expensive and unnecessary.

Quite so Minister, quite so.

And talking of 'expensive and unnecessary' what will the privatisation of state owned East Coast cost?

Are we perhaps having a 'cake and eat it' moment Norm?

Directive 91/440/EEC - Just fancy that!

This from Reuters...

The European Union's Transport Commissioner wants rail companies to separate their passenger and freight train business from their railway network management activities by 2023 to make it easier for new entrants to compete, a German newspaper reported.

So obviously not a requirement in 1993, eh Mr Major?
 

Command Paper - Measuring progress

This from Captain Deltic...

Celebrating 19 years of government meddling

John Major in 1993 - "British Rail is deeply inefficient"

Command Paper in 2012 - "The rail industry... remains unacceptably inefficient."

Progress indeed!

Deltic rails at Deadwood's history rewrite

The mad Vulcan is at it again.

This near illiterate anti-rail rant from Redwood's blog:

Listening today to criticisms of the governemnt’s aim to get the UK railway system to a similar level of efficiency as contiental systems by reducing some 30% of cost, I was struck by people telling me our system is dearer becausee it is privatised. I seem to remember passanger numbers and freight volumes rising strongly, and subsidies falling, when it was fully privatised. Then costs and subsidies rose swiftly again ocne the main part of the railway, the track and signals were renationalised. The old nationalised monopoloy had a poor record with falling use, safety problems and high levels of subsidy.

Happily the Welsh national anthem mangling car-loon has been neatly fisked by Captain Deltic in the blog's comment section:

You claim, presumably from Conservative mythology that “the old nationalised monopoloy had a poor record with falling use, safety problems and high levels of subsidy”.

Fact. Between 1983 amd 1989/90 subsidy fell, at 1989/90 prices from £1,329 m to £587m.

Fact: Over the same period Government subsidy as a share of total passenger revenue fell from45% to 25%. Today it’s around 50%

Fact. Ridership increased from 18.3 bn passenger miles to 20.9bn (21.3bn in 1988/89.

Fact: Over the same period Freight tonnage was down slightly from 145.1 m tonnes to 143.1m (149.5m in 1988/89)

Fact: By 2000 when Railtrack was forced into adminstration passenger miles were 23.7 billion and freight tonnage lifted down to 95.4 million.

1989/90 is chosen deliberately because it marks the end of the economic cycle. Note that passenger ridership in 2000 had only just topped the 1988/89 peak.

Good effort and happy birthday Captain Deltic!

That is all.