embargo: 00.01hrs 24 December 2015
The report – Staying On The Right Track by Dr John Stittle (Senior Lecturer in Accounting at the University of Essex) – also warns of a “disastrous” return to the days of Railtrack if Network Rail becomes a for-profit company.
The report was commissioned by the TUC and rail unions’ Action for Rail Campaign in response to the government consultation being undertaken by Nicola Shaw into the future shape and financing of Network Rail.
Submitted on the day of the close of the consultation, Dr Stittle’s report outlines the following key arguments against re-privatising Network Rail.
The Shaw review should therefore give more priority to the benefits of a vertically integrated railway in public ownership supported by more longer- term and sustainable funding,
Senior Lecturer in Accounting at the University of Essex Dr John Stittle said:
“It is essential that the Shaw Commission does not support any form of privatisation for Network Rail. Railway privatisation has been a clear and costly failure for both passengers and tax payers.
“The country cannot afford to have Network Rail privatised either wholly or partially. The industry must not be returned to the disastrous era of Railtrack where shareholder returns were placed above safety and investment.”
TUC General Secretary Frances O’Grady said:
“This report provides a very compelling case for keeping Network Rail as a public body.
“Taxpayers and the travelling public deserve a modern, sustainable approach to upgrading our railways. Not a repeat of past failures.
“Resurrecting the ghost of Railtrack could lead to a worrying decline in safety standards and higher fares.
“More fragmentation and commercialisation would be the worst of both worlds.”
ASLEF General Secretary Mick Whelan said:
"We remain hopeful that the mistakes of the past will not be repeated as a result of the Shaw report.
“We cannot return to the spectre of compromised safety and investment that could be driven by regional capacity and the obvious impact that would have on this country's economic future."
RMT General Secretary Mick Cash said:
“We know that there are siren voices on the right who want to carve up and privatise Network Rail and drag us back to the lethal days of Railtrack and the disasters at Hatfield and Potters Bar. Those wreckers must be fought all the way.
“If the profits bled out of our railways by the greedy private train companies were reclaimed and re-invested through a publicly-owned operation, with Network Rail at its heart, we would have a chance of building a reliable and affordable rail service fit for the modern age.”
Unite national officer for passenger transport Bobby Morton said:
“The Hatfield rail crash in 2000 exposed the major stewardship shortcomings of the privatised national railway infrastructure company Railtrack. It would be madness to revert to this discredited business model where profit trumped all other considerations.
“If the lessons of history teach us anything, it is that a publicly-owned railway system provides the best overall approach in terms of investment, cheaper fares and better health and safety – you only have to look to Europe to see the strong evidence for this.”
NOTES TO EDITORS:
Contacts
TUC Alex Rossiter T: 020 7467 1285 M: 07887 572130 E: arossiter@tuc.org.uk
ASLEF Keith Richmond M: 07977 498 794 E: richmondk@aslef.org.uk
RMT Geoff Martin M: 07831 465 103 E: G.Martin@rmt.org.uk
TSSA Tom Condon M: 07894 390 480 E: condont@tssa.org.uk
Unite Shaun Noble M: 07768 693940 E: shaun.noble@unitetheunion.org
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