Tories switch track on rail policy

Dub13

From http://www.guardian.co.uk/uk_news/s...rticle_continue

Oliver King and agencies

The Conservatives today admitted that the privatisation of the railways under John Major in the 1990s was a mistake that inflicted costs on both passengers and the taxpayer as well as hindering expansion.

Launching a Conservative Rail Review today the shadow transport secretary Chris Grayling said that privatisation pushed up the cost of running the railway system - and hence fares - and the party would not seek to reprivatise the system if it returns to power.

Speaking to a meeting of rail industry figures Mr Grayling said: "We think, with hindsight, that the complete separation of track and train into separate businesses at the time of privatisation was not right for our railways.

"We think that the separation has helped push up the cost of running the railways - and hence fares - and is now slowing decisions about capacity improvements.

"Too many people and organisations are now involved in getting things done - so nothing happens. As a result, the industry lacks clarity about who is in charge and accountable for decisions."

A review, leading to a strategy paper next year, will be carried out "with a view to securing a much greater degree of integration between track and train".

Mr Grayling also warned that passengers were facing higher fares and greater overcrowding in the next few years because no increase in capacity is planned before 2014 despite a projected 30% growth in passenger numbers.

"All of this adds up to more and more passengers, on more and more overcrowded trains, and with constant upward pressure on fares to try and take the sting out of overcrowding. Frankly, I don't think this is sustainable," he said.

Mr Grayling added: "We are not expecting to recreate British Rail, but we do want to work with the industry to identify a better structure to ensure it can meet the challenges of the next decade."

While politicians should be removed from making decisions on the railways he said that the Tories did not intend to take the rail network back into public ownership but that new integrated organisations would be expected to work under franchise rather than own the track.

The aim would be, however, to ensure there is greater scope for more long-term investment decisions which are often impossible under the current shorter franchise arrangements.

"The new structure would also have to protect the interests of freight users to get more freight off the roads. Of paramount importance in the work we do will be ensuring that any new structure must protect the interests of freight users and encourage future growth in rail freight."

Mr Grayling also indicated that the Conservatives would give railway workers financial incentives to improve customer services and prevent strikes.

"We want to see rail workers share in the future financial success of the railways, particularly to discourage future militancy and strike action. We regard the people who work on our railways as skilled professionals, responsible for the safety, operation, logistics and customer service of our network. We think they should share in its success and have a real incentive to help improve the service it offers."