By John Hibbs, Oliver Knipping, Rico Merkert, Chris Nash, Rana Roy
The talk on rail privatisation frequently turns out to target very slender matters. these on either side of the argument appear to be in a position to hire a mass of facts to end up their element. Proponents of privatisation recommend, with a few credibility, that each one was once quite good with the privatised railways until eventually the Hatfield catastrophe. competitors aspect to spiralling charges seeing that privatisation. The authors of this monograph learn privatisation within the context of the lengthy historical past of continuous govt intervention. the govt. imposed upon the a specific constitution - separation of song and wheel. It additionally wrapped it up in expanding quantities of law. After reading the background of presidency intervention within the railways and the privatisation method, the authors of this monograph then learn the way forward for railway coverage. may still the be allowed to conform its personal constitution - remerging the possession of song and wheel if it needs? What points of a railway could be regulated? Who may still personal some of the elements of the infrastructure? This monograph is vital studying for all with an curiosity in railway coverage and the method of privatisation.
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Extra info for The Railways, the Market and the Government
Example text
Table 2 indicates government support to the rail industry since 1985/86. It is important to mention that the form of 89 28/3/06 12:50:23 t h e r a i lway s , t h e m a r k e t a n d t h e g o v e r n m e n t privatisation led to higher government grants in the short term. All assets were sold off and train operating companies suddenly had to pay commercial rates for using them. Therefore the revenue support grants to domestic passenger services (central government grants plus Passenger Transport Executive (PTE) grants) increased sharply directly after privatisation.
The ‘great utilities’ – water, gas, electricity and telephones – had been seen as natural monopolies and thus suitable for public ownership, but their privatisation was accepted as the gains that followed came to be felt. The natural monopoly argument was not seen to apply to transport as such, with even a Labour government finally withdrawing from road haulage and distribution, so how did it come about that railways were felt to be ‘different’ and could not be subject to market forces, for the feeling seems to remain as strong as ever?
In its 10 Year Transport Plan (DETR, 2000), Labour envisaged a 50 per cent increase in passenger traffic and an 80 per cent increase in freight traffic. Given that there had already been substantial increases in rail traffic since privatisation, the network was faced with scarce capacity. The Labour Party expected enormous investments, especially from the private sector, to enhance the network, which was ambitious and, as Glaister (2002) shows, in no way achieved. indb 76-77 t h e r e s t ru c t u r i n g o f t h e r a i l s y s t e m i n b r i ta i n it was renamed the Strategic Rail Authority (SRA).
