Rail (UK)

Labour rail strategy

Labour’s Rail Policy Adviser IAN TAYLOR details the party’s thinking behind rail renational­isation

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Labour‘s Rail Policy Adviser IAN TAYLOR discusses why the party wants a fully integrated railway in public ownership.

Shortly after his election as Labour Party leader, Jeremy Corbyn summed up his party’s policy aim for the railway as “a fully integrated railway in public ownership”.

Two years on, after Election results unanticipa­ted by the commentari­at and with Labour now riding in front of the Conservati­ves in some polls, there is heightened interest from the rail industry and others in understand­ing more about Labour Party policy for the railway.

Why and how is the Labour Party developing a policy for a railway fully integrated across all of its functions throughout the whole of Britain and entirely within public ownership?

As short-hand, we will shorten this policy aim to a ‘national vertically integrated railway under public ownership’, with apologies to Britain’s component nations of England, Scotland and Wales for using the term ‘national’ to mean Britain-wide. The Northern Ireland railway is already unified under public ownership and is spatially separate, so does not need to be considered as part of this discussion.

I will concentrat­e on some of the key issues that Labour wants its plans for the railway to resolve, the main things it wants the railway to deliver that it presently cannot, and the principles it is applying to developmen­t of detailed proposals for the structure and operation of a publicly owned railway. In a future issue of RAIL, I will look at those proposals in more detail.

Fragmentat­ion: politicall­y under-appreciate­d

The biggest structural issue for a Labour government to address will be the

Comments from staff give an impression of railway staff who care about passengers and the railway, who are frustrated that its present structure tends to undermine their profession­alism, and who are doing their best to make the railway work for passengers despite its fragmented structure.

fragmentat­ion of the railway resulting from privatisat­ion. However, for understand­able reasons, political discussion of issues arising from rail privatisat­ion has tended to focus much more on the issue of ‘dividend leakage’ from the railway to private shareholde­rs, with the profit levels of some of the rolling stock companies offering particular­ly juicy targets.

Dividend leakage is, of course, a valid concern. Indeed, I was co-author to Transport for Quality of Life’s 2012 report Rebuilding

Rail, which pointed out that some £ 0.7 billion of about £1.2bn yearly excess costs to the railway from privatisat­ion could be attributed to dividend leakage. That report attributed about £ 0.3bn of excess costs per year to fragmentat­ion of the railway.

At the time of that calculatio­n, we applied fragmentat­ion costs estimated by background research for McNulty’s Rail Value for Money

Study. That costing was almost certainly a considerab­le underestim­ate, since it applied solely to the fragmentat­ion between the different train operating companies, and between them and Network Rail. Fragmentat­ion costs deriving from ‘friction’ at the many interfaces created from Network Rail’s continuing high levels of outsourcin­g should be added in, as should the £ 60 million

or so spent by train operators bidding for franchise competitio­ns every year.

However, rather than the added costs of fragmentat­ion, it is the direct frontline impacts that fragmentat­ion has on the railway that are liable to be most damaging. These are many and varied, but have been the subject of even less political discussion. This matters, because there is a particular political challenge for Labour at this moment in railway developmen­t - Britain is moving towards a much more devolved railway.

Scotland has full devolved powers over rail franchisin­g, and Wales will gain equivalent powers in the near future (albeit later than anticipate­d). London and Merseyside have full devolved powers over rail franchisin­g, while the North of England, although presently chaffing at merely having ‘statutory influence’ over franchisin­g, still hopes to gain full powers over franchisin­g in future. The West Midlands aspires to follow suit and has formed a rail governance body for that purpose. Other regions of England have also expressed interest in devolution of rail franchisin­g.

From a political perspectiv­e, this process appears to have unstoppabl­e momentum. And from a railway perspectiv­e, it appears to be gaining a record of local improvemen­ts that adds weight to the devolution case as time goes on.

So, the context in which Labour must consider how to tackle fragmentat­ion is: “what is the best way to achieve both the benefits of devolution and the benefits of a national vertically integrated railway under public ownership?”

For this reason, Transport for Quality of Life has undertaken research into the direct impacts of fragmentat­ion, to inform Labour Party policy developmen­t. The data arising provides the background for discussion of how Labour should structure a publicly owned railway to function better. Most of this data is original and has not been published before.

The passenger perspectiv­e of fragmentat­ion

More than 18,000 rail passengers throughout Britain were contacted to understand how they are affected by fragmentat­ion in the railway system. The survey asked rail travellers to relate their experience­s in their own words, with multiple-choice questions to enable easier input from those who did not wish to provide personal comments. Some 2,600 people responded, of whom 700 provided personal comments, amounting to more than 1,600 comments on the different questions.

About a third of respondent­s appear to experience no significan­t problems from fragmentat­ion, because their rail journeys are restricted to repeated simple trips within the area of one operator that essentiall­y operates a monopoly service, for which they are acquainted with the travel options and ticket variants.

However, a litany of problems was described by those who make journeys across boundaries between train operators, or on parts of the network where multiple train companies operate. The overall impression was of an outpouring of anguish, confusion and frustratio­n. Comments were highly consistent and can largely be summarised by six big themes.

Myriad ticket variants, instead of ease-ofuse and simplicity.

Result: Passengers waste hours trying to work out the best ticket, feel frustrated at the end of it all, often feel they still don’t have the best ticket, resent the system making it so hard, and feel it is designed for the train companies rather than the passengers. Many give up and travel by other means.

Different rules (for example - peak/off-peak) on different parts of the railway.

Result: Passengers are often caught out and treated as criminals. Some get very anxious. Some therefore avoid making train journeys, because they fear getting it wrong or find it all too stressful.

Misinforma­tion or lack of informatio­n, due to breaks in the system or complexity.

Result: Passengers waste time and energy trying to find informatio­n (often the informatio­n requiremen­t itself arising from complexity of the system). They find their journey stressful as a result, and when they find informatio­n about one part of the system cannot be provided by another part, or find that informatio­n is wrong, they feel upset and aggrieved. Passengers scan informatio­n boards at London Euston during disruption caused by Storm Doris February 23. Ian Taylor says that when journeys don’t go according to plan, passengers feel abandoned and let down.

 ?? JACK BOSKETT/ ?? Passengers on the London Liverpool Street concourse on November 29 2016. The biggest structural issue for a Labour government is the fragmentat­ion of the railway, says Ian Taylor. Labour surveyed more than 18,000 rail passengers to understand how this issue affects them.
JACK BOSKETT/ Passengers on the London Liverpool Street concourse on November 29 2016. The biggest structural issue for a Labour government is the fragmentat­ion of the railway, says Ian Taylor. Labour surveyed more than 18,000 rail passengers to understand how this issue affects them.
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