Network Rail Faces Big Fine on Long Distance Performance

[LNW-GW Joint]

In a very dry announcement from ORR: http://www.rail-reg.gov.uk/upload/pdf/290512-performance-breach-letter.pdf
NR will be fined £1.5m for every 0.1 point below the agreed 92% performance target in 2013/14 for the Long Distance sector.

If it does not improve from the current figure (89.1%) the fine would be £43m.
The target for last year was 90.9, this year is 91.5 and next is 92.

While NR certainly is doing a lot to improve things you only have to read this forum over a few weeks to see that there are multiple problems almost every day on LNW/LNE/GW main lines.
The last week, a perfectly normal spring one, has been horrendous, even without a major dewirement event.
What does NR have to do to get up to 92% performance on main lines?

 

[michael769]

My view is that NR seem to have stagnated in terms of making progress in this area. They do seem at long last to have got things close to (or better) than pre-Hatfield, but the last few points to meeting the target have been elusive for a few years now.

Problem is that any "fines" just involve moving money provided by the exchequer via subsidy back to the exchequer - effectively reducing their subsidy seems to be an odd way to drive improvement.

I do not understand why the senior executive's bonuses could not be directly linked to meeting these targets - which might serve to better concentrate their minds on the problem,and encourage a little more innovation. Why not prohibit bonuses at all until targets are met and then a sliding scale of bonuses for exceeding the targets. If the current execs don't like that then let them leave and replace them with folks willing to do actual real work to improve the network.

 

[WatcherZero]

Problem is also that their trying to improve performance at the same time ORR is forcing them too cut costs by 40%.

 

[hluraven]

Problem is also that their trying to improve performance at the same time ORR is forcing them too cut costs by 40%.

The letter (penultimate paragraph) also implies that they will impose further cuts as NR is not efficient enough, which could lead to a downward spiral.

 

[GadgetMan]

It's not all down to Network Rail incompetence. The total delay caused by outside factors like suicides, trespass and vandalism must add up to a fair chunk.

 

[michael769]

It's not all down to Network Rail incompetence. The total delay caused by outside factors like suicides, trespass and vandalism must add up to a fair chunk.

The PPM measure excludes incidents that are outwith the rail industries control.

 

[Bald Rick]

The PPM measure excludes incidents that are outwith the rail industries control.

No it doesnt. Every single late train counts.
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I do not understand why the senior executive's bonuses could not be directly linked to meeting these targets - which might serve to better concentrate their minds on the problem,and encourage a little more innovation. Why not prohibit bonuses at all until targets are met and then a sliding scale of bonuses for exceeding the targets. If the current execs don't like that then let them leave and replace them with folks willing to do actual real work to improve the network.

The bonuses are very much linked to these targets.