Renaissance Delayed? New Labour and the Railways

By Catalyst researchers

In 1998 New Labour promised a "rail renaissance" for the twenty-first century. Four years into their plan the objectives set out in 1998 look in serious doubt.

Considerable amounts of public money have been spent, but the privatised and marketised rail network inherited from the Tory government s unequal to the task. The government' recent rail review has shown they are not willing to tackle to root causes of the problems.

New Labour made some modifications to the inherited privatised system, mainly by attempting subject it to greater regulation. However the private rail industry is now receiving three times the public subsidy that three times larger than British rail received.

The fragmentation of the industry has meant that infrastructure costs continue to escalate, estimated to be running at between three and five times the levels prior to privatisation. The result is that performance is way below levels achieved in the late 1990s.

Achieving a public service railway requires action now. The proposals outlined here include:

· direct public ownership to provide clear accountability for the money spent.

· Bring track renewal in-house so as to provide greater efficiency and cost-effectiveness and thus overcome the cost added by the fragmentation of different ownership of different networks

· ending the franchising of train operations to private operators

· rolling stock companies to be regulated so that there role and operations can be carefully scrutinised.

· Exploit the potential for a rail freight renaissance as part of an integrated transport policy to ensure a system that is economically and environmentally sustainable

· Maintain independent safety regulation

· Devolve planning and control so that transport systems can be designed to meet particular social and economic needs

There are opportunities for the renewal and expansion of British railways as a key form of transport for an equitable, efficient and sustainable twenty-first century.

(Catalyst Working Paper July 2004)