Rail Partners' response to launch of Shadow Great British Railways
Rail Partners chief executive, Andy Bagnall, said:
‘Train companies have been calling for the establishment of Great British Railways for many years but rushing to ban the use of contracted operators, before working out the details of this wider reform, is a political decision that offers few practical benefits for passengers.
‘When the government is facing huge financial challenges, it is counter intuitive to remove the only part of the rail system with a track record of driving growth and reducing subsidy for taxpayers – nationalisation could be costing taxpayers £1 billion per year by the end of this Parliament.’
Notes to editors
- The Passenger Railway Services (Public Ownership) Bill is a single issue bill to prohibit the use of privately contracted passenger operators across England, Wales and Scotland – meaning all services will legally have to be run by the public sector.
- A second and further reaching Bill, which will put Great British Railways on a statutory footing and answer many of the wider questions about the future of the railway, is not expected until later next year.
- Around 40% of passenger railway services are already delivered by the public sector under the state-run Operator of Last Resort (OLR). Of the seven worst performing operators for cancellations during 2023-24, four were publicly run and three were private – while the seven most punctual operators last year were operated by private sector companies.
- Banning the use of privately contracted train companies removes the incentives to maintain cost discipline and grow revenue. Based on historical performance, private operators have shown their ability to achieve productivity growth 1% faster than the public sector average of 0.2% per annum and their entrepreneurialism can deliver growth 1% higher than a public monopoly. Because of the overall scale of the railway, these incremental improvements would make a difference of £1bn a year less subsidy by the end of this parliament – money that can be used for other vital public services, for improvements to the railway, or to hold down fares.