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?

New improved RDG fails to fall at first hurdle!

Much disappointment amongst the curmudgeons of the rail industry!

Eye understands from a number of RDG Associate Members that they actually received an email from the new Director General, containing a letter from RDG Chairman Tim O'Toole, explaining today's changes!

Okay, it might have arrived after the press release... but any direct communication is a big step in the right direction!

RDG beefed up by ATOC 'merger' but supply chain out in the cold.

This from the Rail Delivery Group...

RAIL INDUSTRY CREATES UNIFIED VOICE

Network Rail, train operating companies and freight operating companies have agreed the Rail Delivery Group (RDG) will assume responsibility for policy formulation and communications on behalf of the rail industry.

To advance this objective, the Association of Train Operating Companies (ATOC) will combine its communications and policy functions with complementary resources from Network Rail and support from other RDG members, to operate in future for the RDG as a whole.  Michael Roberts, ATOC’s chief executive, becomes the director general of the RDG, succeeding Graham Smith who has stepped down from the role.

The creation of an expanded executive team will strengthen the RDG’s capabilities to develop policies which benefit rail users and taxpayers, and enable it to provide the railway with a unified voice. 

The combination of resources from ATOC and Network Rail also signals the RDG’s intent to work increasingly in partnership and with common purpose, mirroring developments elsewhere in the industry.

Commenting on the changes, Tim O’Toole, RDG chairman and chief executive of FirstGroup plc, said: “Britain's railways have been transformed over the past 20 years, delivering record levels of growth and performance.  Greater coordination among the train operators, freight companies and Network Rail is the next logical step for the industry to evolve to the next stage of capability. The combination of ATOC resources with Network Rail will provide clear, unified leadership for the industry and ensure it is best placed to build on its unmatched record of success."

Sir David Higgins, RDG deputy chairman and Network Rail chief executive, said: “A better railway brings significant economic and social benefits to passengers, taxpayers and the public. The industry's commitment to work more closely is delivering real improvements to safety, service quality and efficiency. A more effective, better resourced, RDG will help us achieve more for those we serve."

Michael Roberts, RDG director general, said: “The new arrangements are an exciting opportunity to work even more closely with colleagues across the industry.  The team and I very much look forward to supporting group members in their passion to drive forward solutions that benefit passengers, freight users and taxpayers.”

Notes to editors:
1.    The RDG was established in May 2011 to lead the industry in delivering a higher performing, more cost effective and sustainable rail network for Britain's rail users and taxpayers.  Formation of the RDG was a specific recommendation in Sir Roy McNulty’s rail value for money study, published in May 2011.

2.    The RDG brings together the chief executives of passenger operator owning groups, freight operator owning groups and Network Rail. The RDG develops policies, strategies and plans for the coherent management of the rail industry and advances the provision of a safe, efficient, high quality rail service for users and taxpayers.

3.    ATOC’s corporate affairs and policy teams will no longer work solely on behalf of train operating companies but, combined with staff seconded from Network Rail and support from other RDG members, will operate in future on behalf of the RDG as a whole.  The two teams will consist of 18 people in total and will be based at 200 Aldersgate Street, London, EC1A 4HD (ATOC’s existing offices).

4.    The current ATOC business services teams will continue under Michael Roberts to run National Rail Enquiries, Rail Settlement Plan, Rail Staff Travel and the Commercial, Operations and Engineering schemes. The governance arrangements and bodies for the individual schemes will remain unchanged: they will be complemented by ATOC Board which will continue but change its main focus from policy to ensuring a co-ordinated approach to business service provision.  Tom Smith will step down as independent chairman of the ATOC Board by the end of the year.

ENDS

And about the Supply Chain? Not a word!

RDG parks tanks on Rosco lawns

This from Passenger Transport...

The Rail Delivery Group, the Department for Transport and franchise owning groups have begun initial discussions which could lead to train operating companies purchasing new trains directly rather than leasing them from the ROSCOs (rolling stock leasing companies).

Good news indeed.

Anything that emasculates those with a long term interest in the industry, whilst benefiting "thinly capitalised equity profiteers of the worst kind" has to be a good idea (Is this right? Ed).

Apparently First Group is already chomping at the bit to buy new rolling stock for its Great Western franchise.

According to Tim O'Toole, CEO of First Group:

“We need more trains, and we’ve made this plain to the government, and they have got to allow this to happen”.

Quite so Tim and with First Group finances in such robust health it seems such a shame that Dai Woodham is no longer in business.

UPDATE: This from Leo Pink...

Has DfT  Permanent Secretary Philip Rutnam taken a leaf from the General Galtieri Book of  Political Strategems?  

With his department's expensive in-house  procurement of IEP and Thameslink rolling stock under fire, how better to deflect criticism than attacking those nasty people in trade - the  'expensive' ROSCOs.

UPDATE: This from Ithuriel...
 
At a recent meeting of the Rail Delivery Group one topic rasied was:
Rolling stock – issues emerging on value for money.

Can it be that they have woken up to the ludicrous cost of the Great Western and East Coast Ninky Nonk train ?
 
Probably not. We suspect that the real concern is the blood-sucking rentals being charged by the Roscos for err.. Pacers.
 

RDG seeks Associate Members... please?

This from Graham Smith, Director General of the Rail Delivery Group...

“The Rail Delivery Group is pleased to invite companies and organisations that are able to contribute to the work and objectives of the Group to become Associate Members. By becoming Associate Members of the RDG, companies and organisations can make a material contribution to the achievement of the RDG’s objectives, which will, in turn, benefit passengers, freight customers and taxpayers”

Very good and quite right too!

Application forms for RDG Associate Membership can be found here.

But why is the RDG, now a company limited by guarantee, still issuing press releases through Network Rail...

RDG publishes initial thoughts on Franchise Review

This from the minutes of the 9th October meeting of the Rail Delivery Group...

Independent review of franchising
 
This item had been placed on the agenda of the meeting at short notice in the light of the events of the previous week. It was felt that RDG should take a lead on this issue and express the industry’s views to both Government and the independent review of franchising
Points made during discussions included:

• It was essential that the franchising process was restarted as soon as possible;
• There were many changes that would be desirable but there needed to be realism about what was achievable and changes must not get in the way of restarting the franchising process;
• RDG should consider what had been said before on the subject but should not be constrained by previously expressed views;
• RDG‘s views on the key principles of franchising should be expressed succinctly;
• Owning groups were still considering the changes they would seek and the input that they would make; and
• RDG should identify where there was common ground between the owning groups.

During further discussion the Group suggested that some of the issues that could be lodged with the independent review could include:

• The cost, complexity and risk associated with bidding;
• The size, length and risks of franchises;
• That a significant proportion of the savings and efficiencies presumed in the Statement of Funds Available and assumed in the Initial Industry Plan were dependent on the rapid reinstatement of the franchising process enabling franchises to work with Network Rail;
• Mechanisms used in other transport industries and other countries including the use of framework agreements should be considered; and
• There was a paramount need for flexibility in franchising.

The Group agreed that the issue should be progressed by the creation of a working group. The working group should:

• Review previous work on franchising;
• Recognise that significant change could delay the restarting of the franchise process;
• Be distinct from work done by ATOC and other groups;
• Produce a straw man for further discussion; and
• Be responsible for producing RDG’s submission to the independent review of franchising.

Whilst this is a helpful starting point there are one or two gaps in the information that the RDG has published in its minutes.

For instance: 

• Who will be on the new Working Group?

• When is it due to report back?

• Will the Working Group's findings be made public? and;

• Will the Industry Forum be invited to comment on the findings of the Working Group before they are submitted to DfT/Richard Brown?

Now that the ORR has given its blessing to formalising the role of the RDG the group needs to become a lot more transparent and be much more proactive in its engagement with the wider industry.

UPDATE: This from Messrs S Ply & Chain...

Whilst much of the focus on the InterCity West Coast fiasco has been on the impact that it will have on bidders the knock on effect within the supply chain appears not to be given voice.

Significant investment in rolling stock usually follows new franchise awards and with so many franchises now on hold there is a real risk of the supply chain stagnating and shrinking in the short term and overheating in the long.

As McNulty made clear these peaks and troughs need levelling out for the good of the whole industry as well as for tax and fare payers.

RDG needs to broaden its reach and engage with members of the Supply Chain to ensure that conversations on the future of franchising are not restricted to a narrow clique of Owner Groups.

RDG meeting to discuss support for Brown review

Eye understands that the Rail Delivery Group is meeting to discuss how it might assist Richard Brown's Review into Franchising.

This is a massively important piece of work for the future of the passenger railway and also for ensuring that both fare and tax payers get value for money.

Therefore, Eye wishes their discussions well this evening.

That is all.