Tories back vertical integration in rail review announcement

July 17th 2006

Conservative transport chief, ChrisGrayling, has admitted the John Major administration’s decision to  split track and train operations in the 1996rail privatisation was a mistake.

Announcing a policy review Grayling said,‘We think, with hindsight, that the complete separation of track and train intoseparate businesses at the time of privatisation was not right for ourrailways.’  The Conservatives havelaunched a Rail Review. With official figures predicting a 30% surge inpassenger volume Shadow Transport Secretary, Chris Grayling, warned thatwithout firm action, train overcrowding will get much worse. Mr Grayling wenton, ‘We think that the separation has helped push up the cost of running therailways - and hence fares - and has slowed decisions about capacityimprovements. Too many people and organisations are now involved in gettingthings done - so nothing happens.’ 

The Review will involve people from acrossthe rail industry and will report in 2007. It will look at how to secure agreater degree of integration between track and train; how to encourage longterm investment in the rail network - in particular by looking at franchisearrangements; how to protect the interests of freight users and encouragefuture growth in rail freight; and how to give rail workers a greater share inthe financial success of the railways.

Tory leader David Cameron has attempted toplay the Green Policy card, espousing solar panels and cycling to work. Railchiefs are understood to be encouraging the Conservatives to demonstrate agreater grip of transport and railway economy theory.    

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