NR to take control?
Network Rail to ‘take control’ of rail services; and train operators working on changes to season tickets.
NETWORK Rail is expected to be given an enhanced role as a “strong, guiding, co-ordinating mind”, to oversee the rail industry in England. Scotland and Wales have separate arrangements.
It’s thought less likely that Network Rail would be put directly in charge of writing passenger service contracts, although sources suggest that has not been ruled out and that decisions have yet to be taken by ministers at the Department for Transport.
This would largely complete the de facto renationalisation of the passenger railway, with only freight and the leasing of rolling stock remaining outside direct government control.
With just two months to go until the expiry of six-month emergency agreements that have replaced passenger franchises during the pandemic, the DfT is rapidly assessing future arrangements.
“The Government is moving away from the idea of a new arm’s length body to oversee the railway. It needs a much quicker solution that would involve giving Network Rail whole-industry planning and other extra responsibilities,” a wellplaced source told RAIL.
“Keith Williams is reviewing his review,” the source said. “The whole structure of the industry has changed since he wrote his report. With franchises gone and the Government already in charge of passenger rail operations, a White Paper and new legislation are not needed. His report will not now be published. Keith is actively involved in looking again at the structure.”
Another source told RAIL: “It’s a genuine proposal. There was a lot of talk of Network Rail’s role being expanded to create a ‘son of Strategic Rail Authority’ agency. To the Department for Transport this has appeal. It already exists.
It is already fully house-trained.
It has leaders in Sir Peter Hendy [chairman] and Andrew Haines [chief executive] who are seen both as experts and as acceptable across the whole industry. And it is quick and dirty to achieve.”
The chairman and chief executive of Network Rail are both appointments overseen by the DfT.
The source added: “There’s no great love for the franchise owning groups. But the advantages of this approach are largely superficial and it’s a dangerous path to go down.”
A third source commented: “Train operator contracts need to be run by people who know what they’re talking about. The Department for Transport recognises that.”
The most likely immediate
solution is seen as new 18-month management contracts offered to existing operators, in which they earn a set fee in return for meeting performance targets. The flexible contracts would be open to modification.
Passenger numbers and revenue remain impossible to predict, with 85% of services running but carrying only 16% of prepandemic passenger numbers, so the Government has to continue to take the financial risk and collect the revenue, at least until travel stabilises.
Some sources suggest train operators could be offered a 0.5% fee instead of the current 2%, which the owning groups would be reluctant to accept. The alternative would be to hand management to the Government-owned Operator of Last Resort, and at least some large contracts are expected to take that route.
However, if Network Rail were put in charge, it would be a reversal of the previous recommendations by the Williams Review into the future shape of the industry.
In July 2019, Williams said: “One thing I am not considering is giving Network Rail control over the trains. You don’t create a customer-focused railway by putting engineers in charge.”
The DfT declined to comment.