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Review rejects Network Rail privatisation

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But recommends renewed customer focus and more local management of routes

 

A report by the chief executive of HS1 into the future of Network Rail has rejected wholesale privatisation of the railway infrastructure, but did not rule out more private investment.

The “Shaw report” published this week, said that the “needs of passengers and freight operators” should be put “at the heart of rail infrastructure management”, and that Network Rail’s move to devolve management of its eight key routes should be further pursued.

The report says: “It is important to acknowledge the commitment and hard work put in by the people who work across the industry. However, it is important to recognise that that the workforce’s commitment to the railway is not enough, on its own, to operate, maintain, renew and enhance around 22,000 miles of infrastructure and to keep pace with growing demand.

“In this context, a strong, clear framework, which puts customer and end user needs at the front and centre of infrastructure management, is needed to inspire and channel the enthusiasm and expertise of the industry to best effect.

“The shape and structure of infrastructure management in the UK is clearly a central part of rising to this challenge.”

The report made seven key recommendations following an open consultation about Network Rail which prompted 10,000 responses. The recommendations included a clarification of the role of government in Network Rail, an improvement to planning, that new ways of investment in rail infrastructure should be explored and that industry wide initiatives to address skills shortages should be developed. 

Nicola Shaw was asked to produce the report last year, after Network Rail admitted it would be unable to deliver the rail network upgrades it its £38 billion five-year plan, after overspending on electrification work.

Transport secretary Patrick McLoughlin, welcomed the report’s recommendations. He said: “The report confirms that the rail network should be held as a national asset and a key public service. It builds on good progress already being made by Network Rail and focusses on steps to improve performance for passengers and freight users. I will make a fuller response to the Shaw report later this year.”

Mark Carne, Network Rail chief executive was also reported as endorsing more private finance in the railways. However, the RMT trade union warned that Shaw Report opens the door to a “new government rail sell-off”.

Mick Cash, general secretary of the RMT,  said: "This is the Tories looking to knock down what's left of the family silver as Osborne scrambles to plug the gaping holes in his budget.

"Foreign speculators will be queuing up again to plunder Britain's railways for every last penny in the same way as they have mopped up train operations and run them into the ground. RMT will continue to fight any further attacks on Network Rail and will continue to campaign for public ownership of the entire rail system. "

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