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Network Rail privatisation 'on the table' | Network Rail privatisation 'on the table' |
(about 9 hours later) | |
The executive asked to come up with a plan to revive Network Rail's fortunes has said she cannot rule out recommending privatisation. | The executive asked to come up with a plan to revive Network Rail's fortunes has said she cannot rule out recommending privatisation. |
In an interview with the BBC, Nicola Shaw said that a partial or total sell-off "was absolutely on the table; it can't not be." | In an interview with the BBC, Nicola Shaw said that a partial or total sell-off "was absolutely on the table; it can't not be." |
Ms Shaw was drafted in by the government after Network Rail's upgrade plans fell apart last summer. | Ms Shaw was drafted in by the government after Network Rail's upgrade plans fell apart last summer. |
Work to electrify key lines had been dogged by delays and mounting costs. | Work to electrify key lines had been dogged by delays and mounting costs. |
Ministers paused two of the projects, in the Midlands and across the Pennines, and replaced the chairman, while a number of reviews are carried out. | Ministers paused two of the projects, in the Midlands and across the Pennines, and replaced the chairman, while a number of reviews are carried out. |
Ms Shaw, who is the boss of Britain's only high speed line, HS1, was asked to come up with a report before the Budget next spring. | |
She said there were a whole range of issues that had to be considered and she was keen to hear what people had to say. | |
She said she would also recommend changes to the regulator if necessary. | She said she would also recommend changes to the regulator if necessary. |
A period of evolution | A period of evolution |
"I don't believe there is one perfect answer. I think there is something that we'll go forward with for the next period of evolution of the railway. I don't think there has to be a big row. The challenge for me is how to bring people together. To find a way forward that people will support." | "I don't believe there is one perfect answer. I think there is something that we'll go forward with for the next period of evolution of the railway. I don't think there has to be a big row. The challenge for me is how to bring people together. To find a way forward that people will support." |
The future of Network Rail - which controls 2,500 stations as well as tracks, tunnels and level crossings - has been up in the air ever since the embarrassing admission last June that, just one year into a five year upgrade plan, the company had lost control of timetables and budgets. | |
Problems came to a head when the company was re-classified as a public sector body in September last year. | Problems came to a head when the company was re-classified as a public sector body in September last year. |
Overnight, it meant it could no longer borrow extra money from private sources to fill the funding gap. | Overnight, it meant it could no longer borrow extra money from private sources to fill the funding gap. |
I've been told by those close to the situation that the impact of those changes took everyone by surprise. | I've been told by those close to the situation that the impact of those changes took everyone by surprise. |
It also meant the company's £37.7bn debt moved onto the government's books. | It also meant the company's £37.7bn debt moved onto the government's books. |
Difficult job | Difficult job |
One source suggested that before the change "ministers might turn a blind eye" to the extra costs, as long as the job was done. This is no longer possible. | One source suggested that before the change "ministers might turn a blind eye" to the extra costs, as long as the job was done. This is no longer possible. |
Insiders also talked of a failure to check if they had sufficient numbers of qualified engineers to carry out the necessary work. | Insiders also talked of a failure to check if they had sufficient numbers of qualified engineers to carry out the necessary work. |
And they underestimated how difficult it would be to upgrade and electrify the Great Western Line, which dates from Victorian times, while running a service on it. | And they underestimated how difficult it would be to upgrade and electrify the Great Western Line, which dates from Victorian times, while running a service on it. |
Three reviews are under way. | Three reviews are under way. |
Ms Shaw has a difficult job, navigating a wide range of views, including those of the unions and the new Labour leader, Jeremy Corbyn who wants to see the railways back in public hands. | |
"I am talking to unions, and to representatives of staff and to other members of different parties so I hope we have strong engagement because I think it matters." | "I am talking to unions, and to representatives of staff and to other members of different parties so I hope we have strong engagement because I think it matters." |
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