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RMT helpline 0800 376 3706 :: april 2013 :: RMTnews
10
RMT recently gave a present-
ation to parliamentarians at the
invitation of the respected
House of Commons Library on
the union’s view of rail
franchising and what should
replace the privatised system.
Senior assistant general
secretary Mick Cash went up
against the Rail Delivery Group
(RDG), First Group and the Co-
Op Party to make the union’s
case for a publicly-owned and
run rail network.
He highlighted the extensive
findings from the Rebuilding
Rail report from June 2012,
particularly the estimated £1.2
billion ‘privatisation premium’
that taxpayer and passengers
pay for the privilege of having
rail services run by profiteers.
If this massive amount of
money, estimated to top £11
billion since privatisation, were
kept in the industry, a publicly-
owned national rail company
could fund a host of policies
that would be positive for the
railways, society and the
government, including an 18 per
cent cut in all rail fares,
increased investment in the rail
industry and fund cheaper fares
for disadvantaged social groups.
Mick explained how, over the
course of a franchise contract,
the private operator qualifies for
huge government subsidies,
which go up when revenue from
fares falls, effectively insuring
the company against loss of
profit.
He also reminded the
audience that the privatised
TOCs have, for nearly 20 years,
received around three times the
level of annual public subsidy
than that allocated to British
Rail.
The regular use of fare
increases to prop up profits was
highlighted in Mick’s
contribution, as well as the
chronic lack of private
investment in the rail network
which prevents or delays all
sorts of developments such as
electrification, multi-modal
tickets and decent catering
RMT EXPOSES RAIL
Union tells MPs
that rail franchise
contracts and
privatisation is
undermining safety,
service and cost