Posted 10th December 2009 | 4 Comments
Major probe announced into rail ‘value for money’
The Chancellor of the Exchequer has announced a major inquiry into whether rail is currently offering the best possible value for money. Alastair Darling has also confirmed that electrification is to go ahead on the Great Western Main Line and between Liverpool and Manchester.
Mr Darling said in his pre budget report to the House of Commons that funding of £1.1bn was confirmed for GWML electrification and between Liverpool and Manchester via Huyton and Newton-le-Willows. He also revealed that Preston would be included in the north west scheme, but said further details would be announced by the Secretary of State for Transport. As Preston is already on the electrified West Coast Main Line, industry observers have speculated that the route now being added is Manchester–Bolton–Preston, but this has yet to be confirmed.
Railway finances are also now coming under scrutiny. Mr Darling said that there is to be a joint Department for Transport and Office of Rail Regulation study ‘examining ways to improve value for money’ in the railway sector.
The inquiry will look at ‘whether legal, operational and cultural barriers currently stand in the way of efficiency and value for money, ways of creating the incentives across different parts of the rail industry to generate greater efficiency; the possible role of new technology, processes and working practices in fostering greater efficiency; options for generating more revenue, such as car parking and gating at stations, better utilisation of property; and to make recommendations’.
The ORR has welcomed the announcement. Its CEO Bill Emery said: “It will build upon our benchmarking of Network Rail against railways across the world and help deliver tangible improvements. This work will help drive the industry towards achieving our vision of a railway which delivers safety, efficiency and satisfaction levels for passengers and freight users to world class standards.”
Reader Comments:
Views expressed in submitted comments are that of the author, and not necessarily shared by Railnews.
Graham Collett, York, UK
The study is to be welcomed - particularly the benchmarking of NR against other countries. The ridiculous costs now being quoted for new stations and lines are actually deterring local authorities, RDAs and othe potential funders from progressing some much needed schemes.
Let us hope that the intention to look at gating of stations to raise more revenue is broadened to cover revenue protectiin generally. On-train ticket collection by some operators (including the government owned East Coast service) is still inadequate!
Scott M, Sheffield, UK
Looking at the picture just reminded me, was'nt some sort of decision going to be made regarding electrification of the Midland Mainline around this time? I thought they said at the end of the year?
David Spencer, Bolton, United Kingdom
I am pleased that there is to be a quest for greater efficiency and cost effectiveness in the rail sector. However it doesnt take much to identify the first saving which is glaring us all in the face. New rolling stock still comes in different sizes and from different manufacturers, A British standard vehicle such as the Desiro 350 could be the train for everywhere where the ICE is not otherwise used. This would give economy of manufacture and a common approach to maintenance and infrastructure such as common platform height vs carriage floor level. Instead of TOCs being responsible for acquiring rolling stock I strongly suggest that a unifying body arranges rolling stock in future but only of one type!
Lee B, Newcastle upon Tyne, UK
Seeing as Mr. Darling used to be Secretary of Transport, shouldn't that have been his job? i.e. making sure the contracts and procurement delivered value of money for the taxpayer? So perhaps he should investigate himself...