Labour skids off the rails

THe most complex of Tory privatisations were left until last. It was the task of John Major’s government to tackle British Rail a quarter of a century ago.

Major opted for privatisation-max, breaking the railways down into some 20 separate entities ranging from rolling stock leasing firms to regional networks, with Railtrack sitting at the centre.

All kinds of criticisms can be made of the privatised system. Indeed, these pages never shied away from heaping opprobrium on Virgin and First Group after their overambitious, never fulfilled promises for the east Coast Line.

Moreover, the mismanagement of the new timetables, the cause of misery for many commuters, is unforgivable.

Labour may be correct to think that renationalising the network will be popular with citizens let down by the privatised firms. But the policy is misplaced and the data – suggesting privatisation has cost the taxpayer £5bn a year and led to fares that are 20pc higher – distorted.

First, it must be remembered that the tracks and stations are under semi-public ownership anyway following the decision of Blair-era transport secretary stephen Byers to steal back Railtrack from shareholders and rename it Network Rail.

second, it is easy to forget how bad British Rail was. The trains were dirty, old-fashioned and uncomfortable, timekeeping was appalling and the tracks barely fit for purpose. kippers on some long-distance journeys were the only saving grace. The rolling stock has been modernised, wifi has transformed the experience for business travellers and advanced electronic signalling systems have made us safer.

As for the main stations, they have been converted into commercial emporiums with terminals such as New street in Birmingham key to revitalising city centres.

sure, there have been bad strike experiences on southern, and Northern commuter routes are overstretched. But users of the Deutsche Bahn- owned Chiltern, Cross Country, Grand Central and London overground (all formerly, or now, run by Arriva) are among those who could testify to trains running on time and improvements in rolling stock and comfort.

The idea that public ownership will transform investment and moderate fares is for the birds. As part of the public sector, rail would have to compete for depleted Government funds with the NHs and schools. Good luck with that.

There are some outrageously expensive fares on key routes at peak times, such as London to Manchester. This is what is known in the trade as yield management, the same system as used by airlines and hotel chains such as Premier Inn. But offpeak travel, tickets bought in advance, smart use of the timetables, websites and apps can produce bargain-basement fares.

The solution to poor performance is not public ownership but forceful, more effective regulation. As we have seen with ofcom, when it cut loose openreach from BT, competition was immediately released into the market.

Labour’s Andy McDonald describes railway privatisation as ‘catastrophic’. It has been far from perfect. But handing the locomotives, rails, service culture and technology back to Whitehall is not the answer.

Court investor

WHEN the union flag was lowered over Hong kong in 1997, Britain was reassured by China’s promise of ‘one country, two systems’.

Hong kong has continued to flourish as an exemplar of Anglo-saxon capitalism. But not all of the local capitalists have been convinced. While many businessmen have ploughed on and invested heavily in the region, Li ka-shing’s Ck Asset Holdings has shown preference for the old world.

He has popped up as a potential buyer for earls Court Properties, a huge west London site. The sale would demonstrate that there are still good property deals to be done in the Uk ahead of Brexit and that one of the world’s most canny investors still likes Britain.

He has spent $50bn (£38.5bn) on assets such as telecoms firm Three and the Felixstowe, Harwich and London Transport Thamesport since 1995.

That’s the kind of friend we need.

Bruised Apple

TROUBLES continue to pile up for Apple, the world’s first $1trillion company.

Plans for additional production lines at suppliers Foxconn and Pegatron for the iPhone XR have been frozen. And share downgrades are coming fast and furious, sending the stock tumbling 10pc in recent days. The air is escaping the tech bubble.