This is what you said in your first post
Duh? Surely the money spent goes straight into the railway industry?
This is what you said in your second post
Well done old timer, you clearly didn't understand any of my post at all. How on earth are they minimising costs by sending money OUT of the rail industry by charging each other money for resources that would probably be not used anyway (IE empty off peak seats) and were 'free' before? You are actually creating extra costs, especially as the TOC is charging full fare rather than unit costs or the marginal cost of the slightly extra fuel consumption. These are not 'real' costs these are costs written into the industry IE an accounting exercise, the money of which is circulated around. This accounting exercise is simply a ponzi scheme to extract more money from the tax payer (or increased fares) and increase the costs to the rail industry overall - which is so self defeating they are booking coaches! As I said, I would like to know why the need to all be going on that journey anyway and what justification there is for it.
Both my emphasis are in
Red and I think afair presumption as to where you feel the money should go. ?
Lets examine you second post in more detail, shall we ?
Well done old timer, you clearly didn't understand any of my post at all. How on earth are they minimising costs by sending money OUT of the rail industry by charging each other money for resources that would probably be not used anyway (IE empty off peak seats) and were 'free' before? .. .
Neither organisation exists to minimise costs. The TOCs are required to make a profit (or at least operate within the subsidy agreed), in the case of Network Rail it is required to cover its operating cost plus an allowance for investment.
You are actually creating extra costs, especially as the TOC is charging full fare rather than unit costs or the marginal cost of the slightly extra fuel consumption...
No extra costs are being created. Marginal cost accounting does not really come into play at all. A marginal costs is the cost of the prouduction of one extra unit. Any increase in say fuel costs would be so insignificant as to be less than measureable in this scenario.
These are not 'real' costs these are costs written into the industry IE an accounting exercise, the money of which is circulated around. This accounting exercise is simply a ponzi scheme to extract more money from the tax payer (or increased fares) and increase the costs to the rail industry overall.
It is not clear what you mean by this. Are you suggesting that all fares should be the same, or that fares should be based upon marginal costs (which is not in any way a sensible thing to do given the situation) or are you saying that costs should be set to recover the true costs of the train ?.
Recovery of the base costs has to be done on the basis of a strong full fare market. In the railway there is no real marginal pricing because of the way that the Industry operates. The whole cost of operating a train from A to B is costed once. It does not vary with usage, so you cannot identify what the marginal cost would be so therefore you cannot recover it.
BR attempted to recover its operating costs from predicted levels and cheap faresere meant to encourage the use of trains OFF PEAK so as to maximise revenue. These fares were never based upon marginal costing, but on what it was considered was a marketable fare.....something quite different.
..This accounting exercise is simply a ponzi scheme to extract more money from the tax payer (or increased fares) and increase the costs to the rail industry overall - which is so self defeating they are booking coaches!.
THere is not terribly much different from the arrangements when BR operated train services. WE had an agreed amount that was given by HM Treasury, albeit rather than any revenue increases going into the Railway, they were immediately taken back into HM Treasury. Furthermore, when cuts targets were achieved, this set the benchmark for the following year which actually left little incentive to improve.
I found this out when having managed to achieve what had been set in year 1, I was told that this would form the basis for year 2, but with further reductions required, and this at a time when utilities costs and wages were increasing !
As I said, I would like to know why the need to all be going on that journey anyway and what justification there is for it.
They are going on the journey for presumably some sort of briefing or training event. Coventry is close to NRs Westwood training centre.
From what I know of NRs offices, they are very unlikely to be suitable for that sort of meeting