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Hammond stresses need to cut costs


While emphasising the high levels of investment the government is making in Britain’s rail network, Secretary of State for Transport Philip Hammond also stressed the need for the industry to achieve significant efficiencies. In his keynote address at Railtex on 15 June he


said that out of £30 billion currently committed to transport in the years ahead, £18 billion was destined for rail. However, he cautioned that recent levels of subsidy cannot continue and that “the government’s commitment must be matched by a commitment from the industry to deliver cost reductions.” He also reiterated the argument


for building High Speed 2 between London and the West Midlands and on to Manchester and Leeds, claiming that this would refocus rail spending away from London to benefit the wider UK economy. In the face of well organised and articulate opposition to the project, he urged all in the industry to voice their support via the consultation website, warning: “Do not assume that it is a done deal.” Philip Hammond’s address was


the highlight of a programme of presentations and seminars at Railtex 2011 organised in conjunction with the rail engineer magazine. Keynote speeches were also made by Network Rail Chairman Rick Haythornthwaite and by Sir Roy McNulty, author of the Value for Money review of the rail network commissioned by the last government. Both presentations echoed comments made by the Secretary of State regarding efficiencies, with Haythornthwaite arguing that while organisational change was


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taking place – significantly so in Network Rail – an “attitudinal change” was also needed. Rick Haythornthwaite also formally opened Railtex 2011 on 14 June. In his address he underlined Network Rail’s desire to redefine its relationships with suppliers to respond to the efficiency challenges posed by the government and the McNulty report. Joining Haythornthwaite at the opening event was Jeremy Candfield, Director General of the Railway Industry Association. He stressed the importance of continuing collaboration across the industry and the need for innovation “to meet the challenges of reducing costs.”


Transport Secretary Philip Hammond called on the industry to reduce costs (Photo: Adam O’Connor, The Rail Engineer)


SHOW REVIEW RAILTEX 2011 5


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