Consequences of Nationalisation?

[Brown]

As we’ll keep hearing on SWR being nationalised (based on the recent news), I wonder how does it impact the route for all the commuters in general?

Recently this happened to Northern and not sure on the consequences as it’s only been few days but would be lot worse/better as SWR owns core routes in the south in/out from Waterloo.

im very keen to know the views and Im sorry if a similar post has been published already.

 

[randyrippley]

If it happens, nothing initially will change except a drive to stabilise costs while they try to understand the business

 

[swt_passenger]

As we’ll keep hearing on SWR being nationalised (based on the recent news), I wonder how does it impact the route for all the commuters in general?

Recently this happened to Northern and not sure on the consequences as it’s only been few days but would be lot worse/better as SWR owns core routes in the south in/out from Waterloo.

im very keen to know the views and I apologise if a similar post has been published already.

It doesn’t “happen on Northern” until Mar 1st. The idea that anything will suddenly improve or change on that date is fanciful.

A huge majority of SWR issues are infrastructure faults. Don’t expect them to reduce anytime soon.

 

[coradiafan2000]

So they're doing it to SWR and Northern, and may do it to TPE?

At this rate they should just nationalise the whole network and be done with it.

Any bets on who's next?

 

[DJ_K666]

One question I have is how easily can the secretary of state for transport boss Network Rail around? Is it a case of "You do this and if you don't you're fired"?

 

[coppercapped]

One question I have is how easily can the secretary of state for transport boss Network Rail around? Is it a case of "You do this and if you don't you're fired"?

Are you clear about the way these things work? There is a long drawn out process for agreeing the settlement for each of Network Rail's Control Periods. Each Control Period last five years.

If, towards or at the conclusion of a Control Period, the DfT is not happy with the outcomes it is in the DfT's gift not to renew the Managing Director's contract. As indeed apparently happened with the last MD, Mark Carne.

If, however, you are implying that the DfT asks for something to be done outside the agreed contract, the MD declines and the DfT then threatens the MD with the sack, it is quite likely that - after a media campaign - it will end up in the courts.

Oh, and by the way - you might then find it very difficult to find another competent person to take the job on. As well as finding it difficult to find suitable people to run any of the other Government organisations in future. They will all have prior commitments. Why risk the damage to one's reputation?

 

[Anonymous10]

So thats northern swr maybe tpe who's next tfw??

 

[DJ_K666]

Are you clear about the way these things work? There is a long drawn out process for agreeing the settlement for each of Network Rail's Control Periods. Each Control Period last five years.

If, towards or at the conclusion of a Control Period, the DfT is not happy with the outcomes it is in the DfT's gift not to renew the Managing Director's contract. As indeed apparently happened with the last MD, Mark Carne.

If, however, you are implying that the DfT asks for something to be done outside the agreed contract, the MD declines and the DfT then threatens the MD with the sack, it is quite likely that - after a media campaign - it will end up in the courts.

Oh, and by the way - you might then find it very difficult to find another competent person to take the job on. As well as finding it difficult to find suitable people to run any of the other Government organisations in future. They will all have prior commitments. Why risk the damage to one's reputation?

Thanks for the clarification. I did wonder about the control periods too. I was thinking more of the Government being the sole shareholder and conducting things as at a shareholders' meeting.

 

[Brown]

Any latest news on swr? I heard swr may get overtaken by gWr and wonder how true it is?

 

[crablab]

I heard swr may get overtaken by gWr and wonder how true it is?

Seems unlikely since they are entirely separate franchises right now...

 

[coppercapped]

Thanks for the clarification. I did wonder about the control periods too. I was thinking more of the Government being the sole shareholder and conducting things as at a shareholders' meeting.

That's an interesting one!

The shareholders can get a motion passed at the Annual General Meeting to get the Board of Directors to take some specified action. However, this course of action may have an effect on Network Rail's spending - if it increases the Department of Transport and Treasury will have to approve the increase.

But the DfT is also, de facto, the only shareholder...

...so it won't happen this way as the Minutes of the AGM will be on the public record and the DfT will be seen to be playing silly asses.

Much better to apply pressure behind closed doors.

 

[krus_aragon]

So thats northern swr maybe tpe who's next tfw??

That would be surprising, for a few reasons:

The TfW franchise is already closer to a management contract or a partnership with the Welsh Government than the DfT's traditional model.

They've got a lot to do with the South Wales Metro infrastructure projects before the expiry date on the funding ends. Switching supplier/partner now would just delay things further.

Most of TfW's issues have been caused by events outside their control.

If the DfT were to "nationalise" the Wales and Borders franchise over the head of the Welsh Government... well, while they could do it unilaterally (as the Westminster Parliament is sovereign), it would be "very courageous" , to say the least.

 

[Sad Sprinter]

Now that franchising is set to come to an end, how will rail branding look? Will we see more widespread use of the former BR logo and the "National Rail" Brand?