Partnership falls flat at the Commercial Interface

This from Hazel Grove...

Today’s exciting announcement from Government is the Transport Infrastructure Efficiency Strategy, in which Highways England, Network Rail, HS2, TfL and DfT outline their new plans for making everything cheaper, if not better.

But what is this in the small print?

Surely not a suggestion that Network Rail’s efficiency, or lack thereof, is hindered by the quest for passenger franchise revenues?

In the new spirit of the partnership railway, surely its time that this tired old meme was retired?

Industry 'improved finances' - a gentle reminder

This from Benjamin Disraeli...

According to the Rail Delivery Group Notes to Editors on today's launch of the 'Landmark coming together':

"The plan details the progress that the industry has made since it was restructured in the 1990s, when Britain’s railway ran a £2bn a year operating deficit (1997-98) compared to generating a £200m surplus today, benefiting taxpayers. The plan says that improved finances have helped to sustain improvements in the railway that see Britain’s network now ranked by passengers as the best major railway in Europe".

In 1997-98 all Government subsidy to the railway went to the train operators who then provided all Railtrack's income through track access charges. In other words, they met their full operating costs.

Today Network Rail's income comes from a combinatioon of track access charges and a direct grant from DfT.

According to the ORR, in 2016-17, only South West Trains and Virgin Trains East Coast made a net contribution to DfT after Network Rail's Direct Grant had been allocated to the TOCs. The rest ran an operating deficit requiring subsidy. 

And SWT was in revenue share, while VTEC is running at a loss…

Partnership Railway - more gloom for the Roscos?

So, today the rail industry launched its ‘In Partnership for Britain’s Prosperity’ plan.

Backed by all passenger train operating companies and Network Rail, as well as rail freight companies and the supply chain acting in partnership as one railway for Britain the plan contains the following commitments:

1. Strengthen the railway’s contribution to the economy, keeping running costs in the black, freeing up taxpayers’ money
2. Increase customer satisfaction by improving the railway to remain the top-rated major railway in Europe
3. Boost local communities through localised decision making and investment
4. Create more jobs, increase diversity and provide our employees with rewarding careers

The RDG press release contains a host of supportive quotes from business and the industry, as well as this from NR CEO Mark Carne:

“Over the next 18 months passengers and communities across the country will see a transformation in the services that they receive. Thousands of new trains will be introduced as the culmination of years of heavy investment in improving our railway comes to fruition, stimulating the economy by delivering new job and housing opportunities."

'Thousands of new trains'?

Has anyone told the Roscos? Or did Mark mean 'vehicles'?