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| Network Rail faces fine of up to £75m after figures reveal poor punctuality | Network Rail faces fine of up to £75m after figures reveal poor punctuality |
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| Network Rail faces multimillion-pound fines and legal action after official figures revealed that the owner of Britain's rail infrastructure missed punctuality targets with more than one in eight long-distance trains running late last year. | Network Rail faces multimillion-pound fines and legal action after official figures revealed that the owner of Britain's rail infrastructure missed punctuality targets with more than one in eight long-distance trains running late last year. |
| The Office of Rail Regulation (ORR) watchdog warned that the performance was "below what Network Rail has been funded to achieve", including figures for the commuter network that saw a thousand commuter trains in London and the south-east arriving late on the average day. | The Office of Rail Regulation (ORR) watchdog warned that the performance was "below what Network Rail has been funded to achieve", including figures for the commuter network that saw a thousand commuter trains in London and the south-east arriving late on the average day. |
| The ORR is investigating why the track operator missed all of its punctuality targets across England and Wales, and warned that it will be fined about £75m if long-distance services run this late until 2014. Only 87% of long-distance services arrived within 10 minutes of the scheduled time in 2012/13, missing the punctuality target of 92% by two percentage points more than the previous year. | The ORR is investigating why the track operator missed all of its punctuality targets across England and Wales, and warned that it will be fined about £75m if long-distance services run this late until 2014. Only 87% of long-distance services arrived within 10 minutes of the scheduled time in 2012/13, missing the punctuality target of 92% by two percentage points more than the previous year. |
| About 361,000 London and south-east train services were either cancelled or more than five minutes late over the same period, while 70,500 long-distance trains came in more than 10 minutes late or not at all. | About 361,000 London and south-east train services were either cancelled or more than five minutes late over the same period, while 70,500 long-distance trains came in more than 10 minutes late or not at all. |
| The ORR further criticised Network Rail for the reliability of information it holds on the state of its track, bridges and other assets, making repair and maintenance work inefficient. The regulator said a backlog of maintenance meant poor track quality on some routes. | The ORR further criticised Network Rail for the reliability of information it holds on the state of its track, bridges and other assets, making repair and maintenance work inefficient. The regulator said a backlog of maintenance meant poor track quality on some routes. |
| While it praised performance in Scotland, where punctuality was above expectations, and lauded the work done to ensure that train services ran exceptionally well during the Olympics, the regulator warned Network Rail it needed to shape up and would face new targets when its future funding was approved. The ORR will next week give its response to Network Rail's business plan spelling out a £37.5bn investment in rail for the five years from 2014, and is likely to demand more from the money available. | While it praised performance in Scotland, where punctuality was above expectations, and lauded the work done to ensure that train services ran exceptionally well during the Olympics, the regulator warned Network Rail it needed to shape up and would face new targets when its future funding was approved. The ORR will next week give its response to Network Rail's business plan spelling out a £37.5bn investment in rail for the five years from 2014, and is likely to demand more from the money available. |
| The ORR's director, Richard Price, said: "Levels of punctuality for passenger services in England and Wales remain below what Network Rail has been funded to achieve. The company has some catching-up to do to get itself back on course by the time new and, in some areas, more stretching performance targets are introduced for its next funding period between 2014-19." | The ORR's director, Richard Price, said: "Levels of punctuality for passenger services in England and Wales remain below what Network Rail has been funded to achieve. The company has some catching-up to do to get itself back on course by the time new and, in some areas, more stretching performance targets are introduced for its next funding period between 2014-19." |
| Virgin Trains, meanwhile, is taking legal action of its own after claiming that persistent delays have damaged its business. While severe winter weather contributed to the miserable 2012-13 statistics, Virgin points out that punctuality targets have still been missed in the last two months, adding more than 1,000 hours of delays to passenger journeys. | Virgin Trains, meanwhile, is taking legal action of its own after claiming that persistent delays have damaged its business. While severe winter weather contributed to the miserable 2012-13 statistics, Virgin points out that punctuality targets have still been missed in the last two months, adding more than 1,000 hours of delays to passenger journeys. |
| Virgin called for any financial penalties to be diverted into improvements, rather than paid to the Treasury to the detriment of the rail service. | Virgin called for any financial penalties to be diverted into improvements, rather than paid to the Treasury to the detriment of the rail service. |
| Tony Collins, Virgin Trains' chief executive, said: "Network Rail has consistently failed to deliver what it is contracted to deliver. That has directly affected customers' experience, and their impression of rail travel. So any penalties levied on Network Rail should be in the form of tangible improvements that customers benefit from." | Tony Collins, Virgin Trains' chief executive, said: "Network Rail has consistently failed to deliver what it is contracted to deliver. That has directly affected customers' experience, and their impression of rail travel. So any penalties levied on Network Rail should be in the form of tangible improvements that customers benefit from." |
| Network Rail said the success of the railways had created the problems they now faced. A spokesman said: "The challenge we have faced over the last year, and will continue to face in the years ahead, is one of success – more people wanting to use more trains, more of the time. Over the last 12 months we have invested an unprecedented amount in growing and expanding the rail network through over 2,000 projects nationwide. | Network Rail said the success of the railways had created the problems they now faced. A spokesman said: "The challenge we have faced over the last year, and will continue to face in the years ahead, is one of success – more people wanting to use more trains, more of the time. Over the last 12 months we have invested an unprecedented amount in growing and expanding the rail network through over 2,000 projects nationwide. |
| "However, the economic times in which we live mean that alongside delivering new capacity we need to keep a constant drive for improved efficiency. Our overall financial performance remains strong and we are on track to deliver over £5bn of cost savings for the five years to 2014. | "However, the economic times in which we live mean that alongside delivering new capacity we need to keep a constant drive for improved efficiency. Our overall financial performance remains strong and we are on track to deliver over £5bn of cost savings for the five years to 2014. |
| "Building capacity and driving efficiency while maintaining performance at today's historical high levels lie at the heart of our bid for funding for the next five-year control period (2014-19) and the future of the company." | "Building capacity and driving efficiency while maintaining performance at today's historical high levels lie at the heart of our bid for funding for the next five-year control period (2014-19) and the future of the company." |
| Anthony Smith, chief executive of the independent watchdog Passenger Focus, said: "Passengers will be disappointed to see that Network Rail is failing to deliver on their top priority – performance. Passenger needs should run through all planning, spending and bonus schemes." | Anthony Smith, chief executive of the independent watchdog Passenger Focus, said: "Passengers will be disappointed to see that Network Rail is failing to deliver on their top priority – performance. Passenger needs should run through all planning, spending and bonus schemes." |
| Last week Network Rail executives received bonuses of 17% of their annual salaries – cut from a maximum 60% to reflect punctuality failures. The chief executive, David Higgins, received just under £100,000 on top of his annual £577,000 salary. | Last week Network Rail executives received bonuses of 17% of their annual salaries – cut from a maximum 60% to reflect punctuality failures. The chief executive, David Higgins, received just under £100,000 on top of his annual £577,000 salary. |
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