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as most people are still trying to figure out
how alistair Darling’s tax changes will affect
them, one thing is clear: the railways are to
benefit from the Budget, thanks to Darling’s
announcement about further electrification.
The chancellor told the House of Commons, in his
pre-Budget report, that he had ‘given the go-ahead to
south west Trains is still in dispute with the
further plans for rail electrification between liverpool,
government over subsidies.
Manchester and preston’. He added that secretary of
state, lord adonis, would announce details soon and
that a government response to proposals for a high-
Stagecoach rail
speed line would follow early in 2010.
of course, many will point out that this close to a
profitS down more
general election, Darling can have no certainty that
he will be in a position to see this through, and that
than 50 per cent
such announcements are intended merely to increase
labour’s appeal to voters. But if nothing else, it’s a step Stagecoach has earmarked an Underlying pre-tax profits
in the right direction that improvements to the railway extra £20m in a ‘cost reduction across the group fell 28 per cent
are seen as vote winners. programme’ for its rail businesses to £75.5m.
what is needed is clear cross-party support for after half-year profits fell by more The company had earlier said
electrification in the same way that high-speed rail than half. its operating margin of 2.9 per
now has the backing of the three main parties. The The company, which operates cent was smaller than the budget
Conservatives have given their South West Trains, East supermarket chain Lidl.
broad support to electrification, Midlands Trains and is a joint Chief executive Brian Souter
but they have not been specific owner of Virgin Trains, had said: ‘We have performed well
in their commitments. previously announced savings in the face of the continuing
nevertheless, our review of of £50m. More than 400 staff challenging economic
2009 (pages 18-20) shows that have lost their jobs already this environment and increased cost
there were some real high-points year, although the company said pressures.’
for the railway industry in the it did not anticipate any further He said the group was in a
last 12 months. There has been considerable progress job cuts. strong financial position and
on high-speed, the electrification programme has at Revenue from rail rose by ‘well-placed for recovery’.
last been restarted, and we finally have a secretary of 1.9 per cent to £512.9m in the Stagecoach remains in
state for transport who has real passion and a long- six months to 31 October. But dispute with the Department for
term vision for our railways. operating profits fell to £14.9m, Transport over revenue support
it might be an unfashionable point-of-view in these reflecting higher SWT franchise payments to South West Trains
democratic times, but having an unelected peer at the payments to government and and has previously said that SWT
head of our railways is proving to be something of an lower revenue growth. faces significant losses next year
asset. Unlike his colleagues in the House of Commons, if the dispute is not resolved in
adonis does not need to have the same preoccupation its favour.
with the next general election, which gives him more madrid–paris It is currently subject to
freedom to consider the longer term. He has been
line to be built
the Railway Industry Dispute
working more closely with the other parties than his Resolution process and a
predecessors too, thanks to the cross-bench traditions Spain’s Renfe and France’s SNCF decision is expected by April.
of the House of lords. are to work together on a new Passenger volumes on Virgin
He has acknowledged the Conservatives’ and lib high-speed line from Paris to West Coast have risen by 20 per
Dems’ contribution to the high-speed debate several Madrid. The line, expected to open cent over the last year.
times, and is said to be liaising with them on Hs2. in 2012, would make a day trip Gerry Doherty, general
Compare this to former transport secretary ruth Kelly, from Britain to Spain possible secretary of TSSA, said:
who turned down shadow transport secretary Theresa by rail, with an expected journey ‘Taxpayers are subsidising Souter
Villiers’ suggestion for both parties to work time of around six hours each way and Branson by over £200m a
together on a high-speed rail strategy. from London to Madrid via Paris year to jointly run Virgin Trains,
let us hope that 2010 brings continued good by Eurostar. which is the most expensive rail
news for the railways. line in Europe.’
4 rail professional : JANUARY 2010
RPJan10 pp04-05 News.indd 4 11/12/09 13:04:38
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