Maria the Eagle blusters on bonuses

Another belly flop from Maria the Eagle...

Labour's beleaguered Transport shadow opined...

“Commuters facing inflation-busting fare rises will be outraged at the scale of the bonus packages being enjoyed by a few at the top of the rail industry. This comes on top of the Tory-led Government cutting taxes for the most well off while millions pay more.

“Ministers must now act and make clear that bonuses on this scale are simply not appropriate in a company that receives nearly four billion pounds of taxpayers’ money every year."

Eye supposes it is just too much to ask for Maria to actually understand the industry that she mouths on about?

It is ORR that requires Network Rail to have a 'management incentive plan' (bonuses in Maria speak) not government! 

And it will be remembered that ORR is not part of government - the clue is its role as an 'independent economic regulator'.

No matter.

Of course if we are looking round for someone to blame for NR's bonus culture perhaps we might focus on the party in government when the company was actually set up?

Not much from Maria on that one, eh!

Command Paper - Executive remuneration

This from Our Man at 222 Marylebone Road...

From the Command Paper

Executive remuneration has been the focus of public debate.

As a private sector company, Network Rail sets performance pay levels for its senior staff. In response to questions from the wider public about bonus awards that have been perceived as excessive in relation to Network Rail performance levels, Network Rail has worked with the ORR under the terms of its licence to adapt its remuneration approach.

The ORR has made clear throughout this review that its objective is to ensure that Network Rail’s executive bonus payouts are simple, transparent and clearly aligned with performance, meeting long-term taxpayer objectives by rewarding only sustained out performance of long-term financial targets, notably efficiency, while also reinforcing the need to hit overall non-financial regulatory targets, including safety and reliability.

So why was Ms Greening prepared to vote down the Annual Incentive Plan which Network Rail and ORR had worked together to adapt and ORR had cleared?

I ask only out of curiosity.

The case of the Silent Dog (Episode 3)

Telegrammed by 221b Baker Street
'I say, Holmes, what do you make of the strange case of Network Rail's abandoned Management Incentive Plan?

'Watson, you will of course have noted the significance of the strongly worded statement on this matter from the Chair and CEO of the Office of Rail Regulation?'

'But Holmes, they have said nothing!'

'That, Watson, is the significance.'

NR Annual Meeting adjourned

This from Network Rail...

NETWORK RAIL GENERAL MEETING ADJOURNED

Network Rail's general meeting to discuss directors' remuneration was adjourned today. Rick Haythornthwaite, chairman, said: "Today's meeting is the latest leg in an 18-month search to find the answer to a crucial question - how can we retain and attract talent to meet the very significant challenges that Network Rail takes on daily - while at the same time, make our remuneration approach better aligned with taxpayer needs, tougher in its demands and less lucrative in its potential reward. This dilemma remains unresolved."

No doubt the fragrant Justine is busy working on a solution to this very dilemma which, lest we forget, she created?

Wibble from Greening on NR bonuses

This from Torquemada..

Is it not time to put the Transport Secretary to the Question?

Justine Greening claims in a Tory Party press release that:

“Labour designed a system where Ministers have no powers to block Network Rail executive pay and which in 2008 saw bonuses of over half a million given out to the Chief Executive even when there were serious failures".

But DfT is a Member of Network Rail under the not-for profit corporate structure and as a result has the power to vote at the AGM.

Not only that, it has the right to appoint a Special Member to the Network Rail Remuneration Committee.

So Justine has the powers, but for some reason her officials have failed to pass on this vital piece of intelligence.

So as a Member of Network Rail our Justine could actually put her money where her mouth is and oppose the resolution on executive bonuses at the Annual Meeting.

Pish, you may say, what is one vote among a hundred votes?

But we know that DfT has, shall we say, 'influence' with the train operators, who are also Members and we can be sure that they would follow DfT's lead for fear of gainsaying their paymaster - particularly as franchise replacement approaches

And official intervention would strengthen the will of those Public Members opposed to bonus payments and, combined with some judicious 'persuasion', convert the waverers to the path of righteousness..

As the Captain-General of the Deltics hath tweeted, the killer question for Shadow Transport Secretary Maria Eagle is 'Will the Transport Secretary use her vote to oppose any recommendations on bonus payments at the Network Rail AGM'?

But of course the Captain of Netball will do no such thing.

Presumably because, despite all the huffing and puffing, Greening is terrified that if she does the ONS will add NR debt onto the Treasury's books.

UPDATE: This from YourLocalGuardian.co.uk...

The Transport Secretary is to vote against bonuses for top Network Rail executives at the firm's AGM this week, she revealed.

But Justine Greening told the BBC Sunday Politics programme the Government has only a single vote and cannot compel rail bosses not to pay the bonuses. About 80 members can vote on the board and the result will be advisory only...

Ms Greening told the programme: "I'm going to go to the meeting next Friday, I'm going to vote against them."

Just fancy that!