The UK Government has launched a consultation on plans for their rail reform bill. A breathlessly enthusiastic release from the Department for Transport has promised that it will smash the broken rail system, and end major failures and disruptions. It will also establish Great British Railways (GBR), the new overarching body that will bring track and train together under public ownership. Cynics may say two of these objectives are unattainable, and one is still up for … consultation.
In what appears to be a retread of existing ideas, another passenger-centric announcement from the Transport Secretary, Heidi Alexander, promises a lot for the parts of the railway that will be renationalised. It makes scant mention of freight operations, despite the UK government retaining a commitment to grow the freight sector by at least 75 per cent by 2050.
Important milestone in rail reform?
As is well known, the left-wing Labour Party, which took power at the UK general election last July, has pledged to return the British rail network to public ownership (nationalisation). It has continued with the reforms initiated by the previous administration (under the right-wing Conservatives). Even though freight operations will remain in private hands, the government has mandated that the sector will grow. How that might be legislated remains unclear, but it has been widely welcomed by the sector.
However, the UK government consultation launched today (18 February), has implications for the rail industry at large, particularly the supply chain, represented by the Railway Industry Association (RIA). “Today’s announcement is an important milestone in rail reform,” said Noel Travers, the association’s chair. “RIA has consistently called for Government to move forward with industry reform. More than anything, businesses supplying the railway need clarity and certainty over the Government’s plans for the sector, so that they can invest with confidence.”
Revolving door stifles confidence
The RIA comments come on the tail of this month’s disappointing news that engineering giants Wabtec are to pull out of the historic railway works at Doncaster – a move widely believed to be down to a diminishing order book. RIA has continually lobbied for a more equitable approach to railway development, instead of what they have called a damaging “boom and bust” mentality. “It is welcome that the Government’s announcement recognises the need for a long-term rail strategy to give industry certainty on what they can expect, including a long-term plan for rolling stock, which is urgently needed,” says the Association.
In a preview of its response to the consultation, the RIA says that the transition to public ownership of the railways must not result in a hiatus in procurement. The current infrastructure agency Network Rail spends more than seventy per cent of its funding in the private sector. “There cannot be a pause in this work,” says the RIA. “We are continuing to push very hard on this.” The RIA also says there needs to be transparency with rail suppliers, to allow them to deliver. “Partnership,” they say, is vital too. “Be an open and accessible client, and partner with the private sector for the best results.”
Two months to respond
Scepticism has been expressed about yet another consultation process – a response coloured by the revolving door at Horseferry Road (the DfT HQ). The new Labour administration is only eight months into its tenure and already on its second transport secretary. The RIA for its part, says it wants to see productivity and ambition for the future publicly owned railway. “The reforms must leave a positive legacy, including in safety, decarbonisation, exports and the economy,” it says. “RIA will continue to champion the need to collaborate with the supply chain as GBR is established,” added Noel Travers.
“A Railway Fit for Britain’s Future” consultation started yesterday and will last for eight weeks.