THE LAST WORD
T Much more for much less?
he railways have enjoyed a period of unprecedented growth
over the last 15 years, yet investment, whilst substantial, has failed to keep up with demand and planning and approval processes are still cumbersome.
It’s also perfectly true that privatisation of the railways has brought new players into the market but has also fragmented the industry, creating a myriad of interfaces and no true competition or entrepreneurial flair. Worse still, post Hatfield, costs have spiralled.
And now, we face the perfect financial storm. A huge structural deficit, with relatively limited means of safely reducing it in a short period of time. It is a short period of time out of necessity if we are to maintain confidence in the UK economy and ensure a sound recovery. And, in terms of the railways, we are in a new world of privatised operations and ‘semi’ state owned infrastructure.
Railfuture has recently submitted to government a ‘programme for action’. Our programme was entitled Britain’s Railways – Much More for Much Less. In it, we have attempted to outline areas for consideration where costs can be reduced or better controlled. And, just as importantly, areas where effective investment can contribute to future economic prosperity and stability.
Sometimes, you really do have to spend to save. We have not, like some organisations, attempted
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Is this possible or is it just another slogan to mask an illusion? Railfuture is the campaigning name of the Railway Development Society. We believe that it is not only desirable but very possible. It’s not a pipe dream nor is it founded in railway romanticism. Neither is it the fantasy of an organisation that is anti-car or anti-air. We’re not, but we are pro-rail
route, affordability and scale. Strange, that there is no concurrent plan to invest in the classic network to ‘sweat the assets’. HS2 is of no use without a healthy classic network.
• Our roads are choked with traffic and there is capacity to expand the rail freight network but still we lack sufficient strategic freight depots in the south east and, as yet, no clear strategy for the country as a whole.
• Electrification is not a panacea but it will improve the efficiency and costs of rail operations and improve the environmental performance of the system. It will also allow for the cascade of considerable modern diesel units without the necessity of having to order more.
to tell the government how to spend its money or how to restructure the rail budget. That would be both presumptuous and arrogant. Rather, we have tried to influence the direction of government thinking.
But it’s not only economics that we have to consider. Here are just a very few of our thoughts from our programme for action:
• Airlines enjoy a favourable position regarding VAT; therefore we suggest that this should be changed to ensure a level playing field with other transport modes, especially rail.
• Have we yet fully exploited the potential of HS1 and the Channel Tunnel? Is it not high
time that London became a hub on a pan-European high- speed rail system rather than just a terminal for services mainly to Paris and Brussels. Can we also not find novel ways of allowing through services to other parts of Britain?
• Yes, better and longer franchises with less DfT control should leverage investment by the TOCs and encourage entrepreneurial flair. But will it? Will taking out DfT micro-management and extending the term actually achieve anything?
• The enthusiastic political and headlong rush into the HS2 project seems to lack consideration of connectivity,
• Is the current structure of Network Rail fit for purpose? We believe that restructuring and greater regional autonomy would instil new dynamism into the organisation as well as cutting bureaucracy and costs. This could include some instances of vertical integration in areas such as Scotland, Merseyrail and the London Overground.
Perhaps we are asking too many questions. But we have a golden opportunity; a once in a generation opportunity to change the way things are done and influence the way railways are organised and financed. Let’s take this opportunity and not be afraid to think new thoughts.
Oct/Nov 10
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