Return to Archive -by date - by topic - 1998
It was all so easy as the privatisation Panzers swept eastward. Success bred success, as franchise bids became ever more expansive, subsidy profiles ever more aggressive. Michael Schabas, the guru of rail privatisation foresaw the former British Rail running without subsidy, a real triumph of the private sector will.
And when the on-rushing forces came to the social service deserts of the former Regional Railways, optimism was high and they plunged in using the same tactics of more bums on seats and cost cutting to balance falling subsidies.
By now some of the more experienced generals were urging caution. Those who were getting to grips with newly occupied businesses were understanding the scale of the challenge. Experienced railwaymen and even some buccaneering bus men were, quite frankly, appalled at the subsidy profiles which late comers were willing to pay for the regional businesses.
And now the dusty roads are turning to mud, the first snows of winter are starting to fall and, in the year that £300million comes off the industry's subsidies, the realisation is dawning on managers in the front line that this is the rest of your life, a long drawn out war of attrition for the remainder of the franchise.
Already we have seen NWT withdraw its profit related pay scheme before it had run a full year. The only incentive is to keep your job – and next year there will be a £20million subsidy cut at NWT on top of the £14million this year which has blown a £5million hole in the budget.
Meanwhile, on another sector of the Regional front MTL is seeking to sell its rail franchises. Oddly, given the enthusiasm with which the franchise was acquired, a year on and no one can be bothered to bid. Perhaps the prospect of running the railway with £21million less subsidy next year lacks appeal.
And so it goes, with £10-15million less for all other Regional franchises. No wonder there are reports that the front is creaking. Meanwhile former comrades now in Railtrack get their access charges from you come what may, and have seen share option values soar.
Just what John Prescott's panegyric at the Labour Party conference means for those in the front line is unclear. Renegotiation has been mentioned, as have been tougher everything. There is even the prospect of surrender for those who do not have the stomach to continue. But we suspect it will take a long time for this rhetoric to become coherent policy. And we suspect that the Treasury will ensure that no more money is available with hard times just around the corner.
Modern Railways natural constituency has always been the men and women who run the railway. When John Prescott describes the privatised passenger railway as a ‘national disgrace' it is a triumph of perception over reality. It is time for all in the railway community to stand up for those who have stuck at the job through the disruption of privatisation, the rationalisation of the workforce and are now seeing their achievement denigrated. Otherwise, who will want to run a railway?