Posted 17th July 2024 | 8 Comments
King’s Speech confirms creation of Great British Railways
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HM the King has confirmed that Great British Railways will be created and private sector passenger operators nationalised.
► ‘Shadow’ Great British Railways to be set up straight away to start industry collaboration
► Three railway bills planned to allow public ownership, create full GBR, and look again at rail projects north of the West Midlands
► Ticketing reforms, Rail Freight support and green light for open access where it ‘adds value’
► Plans receive broad welcome, but Rail Partners claims nationalisation will increase costs
The industry has been swift to respond to the King’s Speech.
Railway Industry Association chief executive Darren Caplan said RIA ‘welcomes today’s King’s Speech as a strong legislative programme for driving growth by building sustainable infrastructure and improving transport‘.
He continued: ‘RIA and our members support the Government’s pledge to establish a reformed and unified railway system under Great British Railways focused on improving affordability, reliability and performance. A new body with strategic oversight and responsibility for rail can focus on meeting growing passenger demand and boosting industry revenues.
‘Rail suppliers will also be positive about the previously announced plans to set out a strong and visible pipeline of rail work for the sector and to develop a long-term industrial strategy for rolling stock. Accelerating new train orders and low carbon network upgrades can fast-track growth by boosting jobs and skills across the UK and we would encourage the new Government to prioritise such investment. We look forward to more details of how these commitments will be implemented in due course.’
Union reactions
The general secretary of the RMT Mick Lynch said: ‘We welcome today's announcements specifically around removing restrictions on trade unions, the New Deal for workers and the rolling out of public ownership of our railways.
‘These achievements are down to pressure from the trade union movement, and we will continue to articulate what is in the best interests of railway workers and working people as a whole. We will also continue to actively engage with the government on the pay issues in our sectors which can be resolved quickly.
‘Labour has also committed to upgrading rail connectivity in the North. Our belief is that HS2 remains the best option for improving transport links, promoting economic growth and building a modern railway infrastructure, fit for the 21st century.’
ASLEF general secretary Mick Whelan also welcomed the government’s plans. He said: ‘Keir Starmer has delivered today on the Labour Party’s manifesto commitment by setting out plans to bring Britain’s railways back into public ownership.
‘This is the right decision, at the right time, to take the brakes off the UK economy and rebuild Britain. John Major’s decision to privatise British Rail in 1994 was foolish, ideologically-driven, and doomed to fail. It was described even by that arch-privateer Margaret Thatcher as “a privatisation too far” and so it has proved.
‘The privateers have taken hundreds of millions of pounds from our railways and successive Conservative governments have pursued a policy of managed decline which has sold taxpayers, passengers, and staff short.
‘Now we are going to see the wheels and the steel put back together, an end to the failed fragmentation of our network, and a railway brought back into the public sector, where it belongs, to be run as a public service, not for private profit.’
‘Signal of intent’
Urban Transport Group director Jason Prince said: ‘The King’s Speech sends a strong signal of intent that this Government is serious about transforming our transport sector.
‘Our rail services need reform, so it is encouraging that the Government is moving ahead with the creation of Great British Railways. And on buses, local leaders will be given greater powers to franchise or publicly own bus services – powers we have long called for.
‘Together with the recognition that greater devolution can herald positive change for local communities, these new Bills could lead to big improvements in transport.’
Costs warning
However, the private sector operators’ lobby group Rail Partners claimed ‘full nationalisation is a political not a practical solution, which will increase costs over time’.
Rail Partners chief executive Andy Bagnall said: ‘The commitment to reform in today’s King’s Speech is an important milestone. However, getting the detail right below the headline is critical to achieving the government’s ambitions for green growth and reducing the railway’s financial burden on the taxpayer.
‘We want the same outcomes as the new Labour Government – a better railway for those that use it and pay for it. But to change the railway for the better, we must correctly understand the causes of the current challenges to get the right solutions – and full nationalisation is a political not a practical solution, which will increase costs over time.
‘We welcome the recognition that private sector freight and open access operators have a lot to offer, but passenger train companies also have a track record of growing the railway. They want to partner with the government to achieve this success again, within the new framework.’
The programme of legislation set out in the King’s speech was being debated in the House of Commons later the same day.
Reader Comments:
Views expressed in submitted comments are that of the author, and not necessarily shared by Railnews.
david C smith, Bletchley
Well, there may have been only few privatised services making a narrowly defined cash profit, but I think most of the contributors to these columns will recognise the existence of what economists term "externalities" ( "hidden" costs and benefits ) , such as environmental / safety / land usage, etc., which if taken into reckoning push many rail services into the profitable realm..
All I ask is for government to apply a system of subsidy and charges to realise these factors, whilst letting the railway people make their own decisions.
david C smith, Bletchley
Yes, the " treasury led" railway messes up the investment programmes that would otherwise be optimal. Renationalisation would indeed be a mechanism for political rather than economic aims.
Those functions that best sit in the public sector , where natural monopolies rule , such as infrastructure and urban and commuter service , could be more accountable as specific items, utilising much more direct democracy, whilst the commercial parts of the railway would not need to look to government for investment capital.
[Which commercial parts of the (passenger) railway are those? Passenger railways don't make money (except in special cases like open access, which does not provide a comprehensive timetable) -- never have, and never will. This was the illusion which fuelled privatisation -- and that worked, didn't it? In nearly all cases, the 'profits' claimed by private sector operators were achieved because they had been written into the business plan -- either being paid from subsidies or deducted from premiums with the government's blessing. Premiums were usually achievable only because the track access charges were being massively subsidised by the Direct Grants payable to Network Rail. The railway is essential. It is a vital public service. So is the NHS, and no-one expects that to make a profit.--Ed.]
Roger Capel, Stocksbridge, Sheffield
Since 1947, nationalised or privatised, we've lived with that peculiarly British institution, the treasury led railway. Hence, for example, phenomena like the stuttering on / off approach to electrification for years. Given the follow up statements from the chancellor, GBR's creation will do absolutely zilch to get us out of that straighjacket.
H. Gillies-Smith, South Milford
So where does this leave the open access operators? From my experience of Hull Trains they do a pretty good job all round. No nationalisation equalling stagnation there.
[It leaves them just where they were. As we have reported, the government has said oa will continue where it 'adds value'. In any case, Hull Trains, Grand Central and Lumo already share their core route with a state-owned operator.--Ed.]
Steve Hemp, Birmingham
All you will get from nationalisation and giving more power to the unions will be increased cost and reduced reliability.
Socialists seem to ignore that the whole world now successfully follows what Britain has started. Germany is full of private franchises (with British companies present in the market), as is Poland, Czech Republic, Switzerland, Italy to mention but a few...
John B, London
Finally. Never thought I'd see the day. Take back control of the nation's railways and remove the various pigs from the trough.
king arthur, buckley
Anyone would think 1948 to 1997 was a golden age of rail travel...
Tony Pearce, Reading
When you 'Nationalise' something, all you do is 'Nationalise' the blame and the pension fund deficit. From now on when something goes wrong, everyone will blame the Government not the Operators.