Rail can’t take more than its fair share, says head of new trade body
The railway sector can’t take more than its fair share from both fare and tax payers, according to Andy Bagnall, chief executive of the new trade body Rail Partners.
“Train companies want to give their people a pay rise, but it has to be affordable and in the context of restoring the railway to a sustainable basis,” the executive told City PM
Bagnall’s comments come as over the last few weeks rail strikes over job cuts and salaries have threatened to bring Britain to a standstill.
40,000 members of the union RMT working at Network Rail and 14 other operators are set to walk out next week, in what is the first of another three-day industrial action.
“The only way in which to make a pay settlement affordable is through a reform of the railway that delivers productivity gain that in turn unlocks the savings that would fund a pay rise, reducing taxpayer subsidies,” he added.
The remarks embody the spirit of Rail Partners, which represents the parent companies of several train and freight operators.
Launched today in the context of the government’s reform plan, Rail Partners is on a mission to transform the country’s network as it sets out a few key priorities.
The body has lobbied to scrapp on and off-peak tickets, replacing them with a more dynamic system – said to be beneficial to both customers and the industry.
“We want to see more pay-as-you-go in urban areas, and on long-distance routes a greater use of demand-led pricing,” said Bagnall.
According to the chief executive, demand-led pricing would create a smoother curve of prices for trains throughout the day, spreading demand more evenly.
“It would [also] be good for the industry because it would actually encourage more people to use the rail,” he added. “People are put off by the complexity of the fare system and if we could simplify it, that would attract more people.”
To have a thriving future, the network should be based on a “reinvigorated public-private partnership,” Bagnall added.
Bagnall explained that overly centralising the network through state-owned governing body Great British Railways (GBR) could lead to a system that isn’t able to respond to customers’ changing needs and eventually to a decline scenario.
“If we build that decentralised system, we’ll see a railway that is recovering and whose finances are stabilising a real platform to deliver those benefits to the nation, in terms of wider economic and environmental benefits.”
Applauded at the government level, the creation of Rail Partners was criticised by union bosses.
TSSA general secretary Manuel Cortes called it “another rearranging of the deckchairs.”
“The Tory government can give its creation of Rail Partners all the gloss it wants, but passengers won’t be fooled,” he said.
“If the government was serious about improving our railways, they would end profiteering, stop their deep cuts agenda and keep services such as booking offices open rather than threaten their closure.”