The Rail Review - a recipe for cuts?

A LTHOUGH the union welcomes abolition of the Strategic Rail Authority, devolution and the transfer of some operational responsibilities to Network Rail, the review does not end the disastrous fragmentation of the industry caused by the Tory privatisation. The rail network will still have ten or more train operating companies, Network Rail, the franchising body, the rail regulator, six track renewal companies, 200 contractors and three rolling stock companies. "We will continue to have a patchwork of competing interests, with private profits soaking up billions of taxpayers money," RMT general secretary Bob Crow says. Although an enhanced government role is promised, together with some steps to re-integrate the fragmented structure of the industry, the White Paper explicitly rules out a return to public ownership. Instead the private partnership approach is enshrined with the railways being described as “a public service, specified by government and delivered by the private sector”. RMT also fundamentally disagrees with the proposal to transfer responsibility for passenger safety to the regulator and away from the Health and Safety Executive because of the financial conflicts of interest involved. Responsibility for safety will be further fragmented since HSE will still be responsible for rail workers safety. No to bustitution RMT opposes proposals to make it easier for Passenger Transport Executives to introduce contracts for buses as part of a includes reductions Under current ar specify and manag services in their are services they spec subsidy they receiv subsidies are incre national rather than However, the gove transfer financial re local transport dec PTEs, meaning tha the full cost of redu increasing services simply transfer the potential reduction from a national to a will make the defen services and route and rural areas cen campaign for the r of the industry. Network Rail The role of not-for- company Network expanded following well as their curren operation, mainten Network Rail will a bility for route utilis and timetabling. Ei integrated control c of the core UK rail opened to encoura operational integra Network Rail and t The first three ar private sector cont removed and main house by Network significant perform improvements. Des cent fall in delays i government intend renewals in the priv RMT fundamentally the government po continue the camp removal of the priv RMT news – The future of rail The rail review – recipe for cuts? Catalyst report blasts rail privatisation A recent Catalyst think-tank report called for a publicly owned and accountable railway as the "appropriate model" for ensuring a proper return for the public money being invested in the industry. It points out that although considerable amounts of taxpayers’ money have been spent, large amounts of the privatised and marketised rail network inherited from the Tory government is not up to the task. It says that the government's recent rail review has shown it is not willing to tackle the root cause of the problems. New Labour made some modifications to the inherited privatised system, mainly by attempting subject it to greater regulation. However, the private rail industry is now receiving three times the public subsidy that British rail received. The fragmentation of the industry has meant that infrastructure costs continue to escalate, estimated to be running at between three and five times the levels prior to privatisation. The result is that performance is way below levels achieved in the late 1990s. The report says that achieving a public service railway requires action now including: G Direct public ownership to provide clear accountability G Bring track renewal in-house so as to provide greater efficiency and cost-effectiveness and end the fragmentation of the network G Ending the franchising of train operations to private operators G Rolling stock companies to be regulated to scrutinise operations G Encourage a rail freight renaissance as part of creating an economically and environmentally sustainable integrated transport policy G Maintain independent safety regulation G Devolve planning and control to meet particular social and economic needs Catalyst will be holding fringe meetings in conjunction with RMT, ASLEF and TSSA at the TUC and Labour Party conference this month. G The Catalyst report, A Future for Rail, is available from Catalyst at 150 The Broadway, London SW19 1RX, The government review of the rail industry contained in the White Paper ‘The Future of Rail’ is a curate’s egg which may threaten vital services 16 strategy which s in rail services. rangements PTEs ge local rail eas; the more rail cify the more ve. If costs rise, eased out of n local funds. ernment wants to esponsibility for cisions to the at they will bear ucing fares and s. Such moves responsibility for ns in rail services a local level. RMT nce of jobs, s in the regional ntral planks of the e-nationalisation -dividend Rail has been g the review. As nt responsibility for nance and renewal ssume responsi- sation strategies ght new centres for each routes will be age closer ation between he train operators. reas in which the tractors have been tenance taken in- Rail have shown ance spite the 21 per n these areas the ds to keep track vate sector. The y disagrees with osition and will paign for the vate sector contract regime on infrastructure renewals. Train Operating Companies There will be a reduction in the number of franchises to more closely align Network Rail’s regional structure and responsibility for issuing franchises will pass to the Department for Transport. RMT will be seeking clarification from the department on how the transfer impacts on the current franchising round and will fight to ensure that any reduction in franchise numbers does not lead to job losses and service cuts. No mention is made in the White Paper of South Eastern Trains (SET) which has been operating successfully in the public sector with improved performance since November 2003. However, the RMT- led campaign to retain SET in public hands has already resulted in a delay in the re-tendering process. Safety In the RMT submission to the rail review it made clear that rail safety should remain free from political and economic pressure and protected from commercial considerations which could compromise safety. RMT said that safety should remain, as recommended by Lord Cullen, with the Health and Safety Executive. Unfortunately, the White Paper has decided to pass the regulation of rail safety for both national rail and metro systems, including London Underground, from the HSE to the Office of Rail Regulation. This transfer of responsibility has been largely motivated by a desire to placate private sector interests, which believe that safety regulation is currently "gold-plated" and too expensive. All these systemic problems underline the fact that only the re- nationalisation of the entire railway network, democratically run by those who use and work an integrated transport network, will be able to deliver a decent 21st century transport system. G A full version of the RMT response to the rail review is available on the RMT website. – a RMT news – The future of rail Train Operating Company Net subsidy Anglia Railways 4.4m Arriva Trains Merseyside 20.4m Arriva Trains Northern 241.3m Arriva Trains Wales 45.5m C2C 20.1m Central Trains 147m Chiltern Railways 24.4m Connex South Eastern 84.9m First Great Eastern (31.9)m First Great Western 31.9m First North Western 191.7m Gatwick Express (12.9)m GNER (22.4)m Island Line 3.1m Midland Main Line (3.4)m ScotRail 268.3m Silverlink 52m South Central 90.8m South Eastern Trains 49.1m South West Trains 116.2m Thames Trains (5.1)m Thameslink (41)m Transpennine Express 30.3m Virgin Cross Country 246.1m Virgin West Coast 331.9m WAGN 10.5m Wales & Borders 78.1m Wessex Trains 78m Total £2.04 billion The Strategic Rail Authority annual report published on 21 July indicates that net franchise payments to the Train Operating Companies stood at just over £2 billion in 2003-04. LOBBY: RMT members lobbying parliament earlier this year ( ) = payment made to SRA 17