Nowhere was this denunciation more unequivocal than in the leadership of the Labour Party. At first, it seemed as though the Labour leaders recognised their power. If they announced that the privatised railways would be taken back into public ownership, then the entire privatisation project was bound to fail. After all, who would buy shares in a newly-privatised industry which the Labour Party was pledged instantly to renationalise? Not a penny profit could be made out of such a situation, and since profit was and is the only possible motive for investing in the railways, Labours pledge on renationalisation was crucial to the future of the industry. This understanding of their own power led to the formation among Labours transport spokespeople of the Crystal Clear Faction. Their leader was big bluff burly John Prescott, the man who doesnt mince words. He told Labours Conference in 1993: Let me make it crystal clear that any privatisation of the railway system that does take place will, on the arrival of a Labour Government, be quickly and effectively dealt with . . . and be returned to public ownership.
Nothing could be more crystal clear than that, and by the following year it was time for a pledge. Frank Dobson, Labours transport spokesman at the 1994 Conference, assured his ecstatic audience that Labours promise on this occasion was not narrowly confined to Party members. Let me give this pledge not just to this Conference but to the people of Britain. The next Labour Government . . . will bring the railway system back into public ownership. The following year (1995) Labours conference spokesman was Michael Meacher, a fully paid up member of the Crystal Clear Faction. He concentrated on the speculators who were hovering over the battered corpse of the rail industry. If there are any investors listening who are thinking of buying into our rail system, I have a message for them. The railways depend on public subsidies to the tune of £1.8 billion a year. There is no guarantee that subsidy will continue. If you want to buy a pig in a poke in all those circumstances, then it is up to you, but dont come crying to me when it all ends in tears.
The message seemed clear but it came from Michael Meacher, and he was Old Labour, so perhaps it could be disregarded. But wait. Hark to the speech made at the same Conference by the new Labour leader himself, Tony Blair: To anyone thinking of grabbing our railways, built up over the years, so they can make a quick profit as our network is broken up and sold off, I say this: there will be a publicly owned and publicly accountable railway system under a Labour government.
For a time the message was repeated so firmly by so many Labour politicians that it was believed even in the big corporations. Brian Souter, chairman of the burgeoning bus company Stagecoach, told a Commons Committee two years later that in 1995 nobody in the industry would touch rail privatisation with a bargepole. The prospect of Labour doing what it said it would was enough to frighten off all but the small fry. When the Roscos were flogged off in January 1996, no big investor dared to bid even a fraction of what they were worth. Labours bold talk had worked. No serious contender was thinking of grabbing our railways or buying a pig in a poke. If the Labour Party had stuck to its promises, the railways would never have been privatised.