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From The Socialist newspaper, 1 July 2015

Government reneges on rail modernisation pledge

Photo by Train Photos (Creative Commons)

Photo by Train Photos (Creative Commons)   (Click to enlarge)

Mark Pickersgill, Stevenage Socialist Party

Last week transport secretary Patrick Mcloughlin announced that Network Rail's £38.5 billion modernisation plan for Britain's railways has been postponed. This underscores the government's intentions of yet more savage cuts in public spending.

Electrification of the Midland main line north of Bedford towards Sheffield and the Leeds to Manchester line has been put on hold. Prestige projects such as HS2 and Crossrail have been given priority over other necessary improvements to the railways.

Richard Parry-Jones, chairman of Network Rail, who is paid £250,000 a year and works just two days a week, is stepping down.

He is being replaced by Peter Hendy who currently earns £650,000 a year as commissioner of transport at TfL (Transport for London). He also made £4.8 million in a management buy-out of a subsidiary of London buses.

Hendy will be working four days a week as chairman of Network Rail. His salary will be £500,000. These figures also show the huge disparity in salaries between Network Rail and TfL management and their workforces.

Both Network Rail and TfL are funded with public money. Network Rail which runs the tracks and signalling, the most expensive part of the railway system, was created from the privatised group of companies called Railtrack. The Labour government in 2002 was forced to rescue these companies due to their poor record on safety and maintenance. Proof that privatisation of the railways has failed.

The huge infrastructure projects that are required to modernise Britain's Victorian-era based railways are being undertaken with public money.

Subsidy

The private train operating companies (TOCs), such as Virgin and Stagecoach, received over £2 billion in government subsidies last year, money that could've been spent on improvements.

Between 1997 and 2012 Virgin received £2.5 billion of government money to run the west coast line but paid out £500 million in dividends to its shareholders.

The TOCs also received over £140 million in compensation last year from Network Rail for delays and cancellations.

TOCs pass on any shortfall in government subsidies to passengers. Walk-on rail fares for instance have increased on average 240% since the railways were privatised back in 1993.

The privatised railway system costs the government twice as much than it did under the nationalised British Rail, but both Tory and Labour governments have insisted that the railways stay privatised.

But private enterprise is unwilling to take on the huge capital outlay that is required to operate the railway system.

The Socialist Party fights for a nationalised, fully integrated public transport system, run under democratic workers' control and management, to benefit people, and not for profit.

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In The Socialist 1 July 2015:


Socialist Party news and analysis

Osborne's budget cuts will devastate low-income households

The corporate welfare state

Them & Us

Severely disabled funding hit by Tories

Government reneges on rail modernisation pledge

Warrington TUSC councillor slams 'undemocratic' Labour administration


International socialist news and analysis

Solidarity with Greek workers! Reject EU austerity

Terrorist attacks: working class people pay the price


Socialist Party features

How to fight the anti-union laws

Ten years since the London 7/7 bombings


Socialist Party workplace news

RMT plans transport shutdowns

Britain's biggest union to discuss leaving Labour

Escalate strikes to fight council's 90% sell-off

Scotland ferry 'lifeline' sell-off strike

Workplace news in brief


Socialist Party reports and campaigns

Pride: we need politics, not just a parade

£9,000 tuition fees legacy - debt and slave labour

Block Osborne's Billionaire Budget

Victory against disabled transport cuts in Derby

Victory for anti-fracking movement

Shirebrook: united campaign against danger of division

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