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Private rail operators call for public-private partnership




Rail
Partners,



the
lobby
group
representing
privately-owned
train
operators,
has
called
for
the
rail
business
to
‘put
aside
ideological
battles
of
public
versus
private’
and
concentrate
on
creating
an
‘reinvigorated
public-private
partnership
to
get
Britain’s
railways
back
on
the
track
to
growth’.



Franchising
ended
officially
in
2020,
and
all
operators
still
in
the
private
sector
have
limited
contracts,
which
involve
the
government
taking
the
commercial
risk
by
collecting
revenue
and
paying
the
costs,
plus
management
fees.



Four
operators
in
England,
two
in
Scotland
and
one
in
Wales
have
been
renationalised,
starting
with
LNER
in
2018,
following
the
failure
of
the
Virgin
Trains
East
Coast
franchise.



The
most
recent
return
to
state
control
was
that
of
Caledonian
Sleeper,
which
was
taken
over
by
a
Scottish
Government-owned
company
from
Serco
on
25
June
this
year.
Although
some
National
Rail
Contracts
in
private
hands
have
been
extended
recently,
others
are
said
to
be
potential
candidates
for
renationalisation.



Unions
and
some
politicians
say
the
transition
should
continue,
with
the
aim
of
completely
renationalising
the
passenger
railway.



Rail
Partners
has
published
a
new
report
prepared
by
Oxera,
entitled
‘Track
to
growth:
creating
a
dynamic
railway
for
passengers
and
the
economy’.
Rail
Partners
says
it
‘sets
out
the
significant
and
complex
challenges
currently
facing
the
railway,
including
the
blurring
of
responsibilities
and
accountabilities
between
different
parts
of
the
system,
prescriptive
and
no-longer-fit-for-purpose
contracts,
an
out-dated
fares
system,
changed
travel
patterns
resulting
in
millions
of
pounds
lost
in
revenue,
and
drawn-out
industrial
action’.



It
adds
that
‘public
control
is
far
greater
today
than
under
British
Rail,
with
the
government
micro-managing
the
smallest
of
commercial
decisions.
Reform
has
been
needed
for
several
years
and
the
pandemic
compounded
the
problem
and
accelerated
the
need
for
drastic
change.’



It
also
claims
that
privatisation
from
1996
halted
railway
decline,
and
that
‘an
operational
deficit
was
closed,
taxpayer
subsidy
reduced
freeing
up
money
for
infrastructure,
and
ultimately,
passengers
returned
in
record
numbers.
Although
franchising
in
its
latter
days
needed
reform,
harnessing
train
companies
in
the
delivery
of
passenger
services
was
transformative
for
customers
and
the
railway.’



Rail
Partners’
chief
executive
Andy
Bagnall
said:
‘Today’s
report
is
about
getting
back
on
track
to
growth.
What
matters
is
what
works
for
customers
and
the
taxpayer,
so
we
should
put
aside
ideological
debates.
The
evidence
shows
that
a
reinvigorated
public-private
partnership
is
the
best
way
to
revitalise
the
railway.



‘Train
companies,
domestically
in
the
past
and
across
the
continent
right
now,
have
shown
the
skills
needed
to
grow
passenger
numbers
and
reduce
costs
for
the
taxpayer.



‘If
reform
continues
to
stall,
the
railway
faces
stunted
recovery
from
the
pandemic
and
worst
case,
a
permanently
smaller
network.
But
with
the
right
reforms,
the
railway
can
return
to
growth
and
act
as
a
catalyst
for
a
stronger,
greener
economy.



‘This
is
one
of
the
most
wide-ranging
studies
on
the
emerging
impacts
of
rail
liberalisation
in
the
EU
to
date.
We
can
draw
on
the
experience
of
managed
competition
across
Europe
to
deliver
benefits
here
in
Britain.



‘The
evidence
from
European
railways
clearly
shows
that,
if
we
get
reform
right,
and
train
companies
are
harnessed
in
the
right
way,
competition
will
deliver
significant
benefits
for
the
customer,
and
ultimately
reduces
subsidy,
bringing
public
spending
down.’



The
Labour
Party
committed
itself
to
completing
railway
nationalisation
in
September
last
year.
At
the
time,
RMT
general
secretary
Mick
Lynch
said:
‘We
welcome
the
Labour
Party
committing
itself
to
public
ownership
of
the
railways.



‘Tackling
the
greed
and
inefficiency
of
the
private
sector
in
our
railways
and
other
public
services
should
be
a
key
priority
for
the
next
Labour
government.
And
the
trade
union
movement
will
be
on
hand
to
make
sure
these
Labour
values
are
delivered
for
working
people.’



Meanwhile,
the
government
has
insisted
that
it
is
still
intent
on
creating
the
new
‘guiding
mind’,
Great
British
Railways,
as
recommended
in
the
Williams-Shapps
Plan
for
Rail
in
2021.
This
would
award
new
‘concession’
operating
contracts,
involving
minimum
commercial
risks
for
operators
but
also
allowing
them
very
little
commercial
freedom.



However,
the
government
may
not
pass
the
necessary
legislation
this
side
of
the
General
Election
next
year.
Although
Parliament’s
agenda
for
the
2023-24
session
has
not
yet
been
published,
the
government
has
said
there
may
not
be
enough
Parliamentary
time
to
deal
with
an
Act
creating
GBR.

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