DfT bashes the ROSCOs and adds to industry cost

Someone evidently has a sense of humour at Rail Business Intelligence!

The latest issue contains a report of a talk given to the Railway Study Association by DfT's Director Franchising, Pete Wilkinson.

He is recorded as bewailing lease costs for ex BR rolling stock:

"How come the ROSCOs get away with the price of second hand trains? It's got to stop."

Quite so Pete, quite so.

Rather elegantly RBI juxtaposed the whinings of DfT's very own Doctor Evil with a story about Eversholt refinancing £600m of senior debt; which according to CEO Mary Kenny, will allow the ROSCO "to respond to future investment opportunities."

As our American friends might say - do the math!

Such apparent naivety in understanding market value from the official charged with franchising will no doubt do much to gladden the hearts of thinly capitalised equity profiteers everywhere!

No matter.

Meanwhile, as DfT clearly has it in for the ROSCOs (again), expect fleet refurbishment to become more difficult as nervous finance houses price in political risk.

Good news for the economically illiterate.

This tosh from the RMT:

THE UNBROKEN growth in profits by rail privateer group Govia is an insult to passengers and rail workers alike, Britain’s biggest rail union says today.

Govia posted a ten per cent increase in rail-operating profits to just under £35 million in the second half of 2007.

As regular readers will be aware The Fact Compiler carries no particular candle for Perma-tan Rail.

However, he feels compelled to point out that as Govia's three rail franchises have a joint turnover of circa £1bn a year the sum of £35m represents a margin of just 7%!

And of course this figure was for the six months before we were all plunged into Gordon's Great Depression....