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Rail renationalisation- do you support it?

Do you think the railways should be renationalised?


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F Great Eastern

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You'll also read about the failures of NR to deliver the line upgrades on the ECML. Although Brexit is another mess caused by the Government in its own right. You say that the privatised railway nationalises the losses and privatises the gains - but you can also say that the privatised railway nationalises the successes and privatises the failures.

An ex TOC management rep used the phrase to me "nationalise the praise and privatise the blame." in relation to the DFTs attitud in that they are happy to take the credit for the good things that happen and pop up everywhere but go into hiding and allow the TOCs to take the blame for everything bad.
 
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Tetchytyke

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Stagecoach doesn't 'need' a bailout. They've already got the money to cover VTEC's losses - the last Stagecoach financials showed this. But the fact is that the DfT/Network Rail failed to deliver on their upgrades which were written into the contract.

That's the story and the crooked privateers in the Conservative Party and the narcissistic tax-Dodgers in the BVI are sticking to it. Someone has to pay for Ann Gloag's soirees at her castle, don't they? And it won't be her.
 

matt_world2004

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No TOC is going to go out full frontal and publicly blame the DFT just like they refused to blame the SRA in the past for very obvious reasons.

You'll also read about the failures of NR to deliver the line upgrades on the ECML. Although Brexit is another mess caused by the Government in its own right. You say that the privatised railway nationalises the losses and privatises the gains - but you can also say that the privatised railway nationalises the successes and privatises the failures.
Network rail compensate. Tocs quite healthy for delays caused to services by infrastructure faults and the stuff about brexit and terrorism being codewords for NR and the DFT sounds like conspiracy theory territory
 

Tetchytyke

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An ex TOC management rep used the phrase to me "nationalise the praise and privatise the blame."

You mean like Virgin are taking all the credit for an IEP train they had precisely zero involvement in?

Still, the TOCs are happy enough to take the blame if they get the cream. Look at Charles "Connex" Horton. He gets half a million a year. The papers are mean about him? He couldn't care less.
 

F Great Eastern

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Network rail compensate. Tocs quite healthy for delays caused to services by infrastructure faults and the stuff about brexit and terrorism being codewords for NR and the DFT sounds like conspiracy theory territory

The TOC's sign a franchise agreement on the basis that they will do certain things and the DFT and Network Rail will do things on their side and it is on that which their calculations are made. If NR/DFT don't do those things properly and on time then it will depress demand.

This is completely different from compensating operators for delays to passengers who are already using the service - and even in that case the operators have to compensate the passengers
 

Agent_Squash

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That's the story and the crooked privateers in the Conservative Party and the narcissistic tax-Dodgers in the BVI are sticking to it. Someone has to pay for Ann Gloag's soirees at her castle, don't they? And it won't be her.

So your saying that even though Stagecoach have written off the losses and they'll be taken on by the private sector, that 'crooked privateers' will still be gaining from it?
Network rail compensate. Tocs quite healthy for delays caused to services by infrastructure faults and the stuff about brexit and terrorism being codewords for NR and the DFT sounds like conspiracy theory territory

Where's the PSU North upgrade by Network Rail - the same upgrade that may mean that HSTs may need to be retained for the 4hr London-Edinburgh services?
 

Tetchytyke

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Has any TOC ever gone bankrupt?

Connex pretty much did. The company itself changed its name to Veolia then Transdev and is doing brilliantly. The people responsible are now running Southern so expertly (and profitably).

Sea Containers, the owners of GNER, also went bust. But GNER itself was trading fine.
 

fowler9

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An ex TOC management rep used the phrase to me "nationalise the praise and privatise the blame." in relation to the DFTs attitud in that they are happy to take the credit for the good things that happen and pop up everywhere but go into hiding and allow the TOCs to take the blame for everything bad.
At the end of the day the TOC's plaster their company name all over the side of the train, as such I presume they are still making a profit. Have Stagecoach or Virgin made a loss on the ECML?
 

Tetchytyke

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So your saying that even though Stagecoach have written off the losses and they'll be taken on by the private sector

What losses? They're contributing less than their state-owned predecessor were, and providing nothing extra. Unless you *seriously* think a bit of red paint and dead cow costs £100m a year?

Like with Arriva's bus operations- who use massive "admin overheads" to disguise a profitable business- accounts only ever say what you want them to.
 

fowler9

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Connex pretty much did. The company itself changed its name to Veolia then Transdev and is doing brilliantly. The people responsible are now running Southern so expertly (and profitably).

Sea Containers, the owners of GNER, also went bust. But GNER itself was trading fine.
Did Sea Containers go bust because of GNER? Apologies mate, am just interested, not after an argument ha ha.
 

F Great Eastern

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You mean like Virgin are taking all the credit for an IEP train they had precisely zero involvement in?

They haven't rolled out the IEP's yet so wait and see what happens with Virgin - FWIW I'm no lover of theirs.

Thameslink is an excellent example of how the DFT go into hiding - a train fleet totally specified by them and totally managed by them, arrives MANY years late and passengers had to put years of overcrowding in the process - you'd swear that they had nothing to do with it.
 

matt_world2004

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Where's the PSU North upgrade by Network Rail - the same upgrade that may mean that HSTs may need to be retained for the 4hr London-Edinburgh services?
Are you saying network rail hasnt compensated VTEC for delays caused by engineering work?
 

fowler9

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They haven't rolled out the IEP's yet so wait and see what happens with Virgin - FWIW I'm no lover of theirs.

Thameslink is an excellent example of how the DFT go into hiding - a train fleet totally specified by them and totally managed by them, arrives MANY years late and passengers had to put years of overcrowding in the process - you'd swear that they had nothing to do with it.
Ha ha, I don't believe that for a second (Kidding).
 

F Great Eastern

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Like with Arriva's bus operations- who use massive "admin overheads" to disguise a profitable business- accounts only ever say what you want them to.

Accounts are audited and honestly whilst people can move things between businesses in different territories to avoid tax, to suggest that you can rig them is very hyperbolic - if it was that simple no company would ever make a loss or have to call the administrators or liquidators in as they'd fiddle the books.
 

F Great Eastern

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Are you saying network rail hasnt compensated VTEC for delays caused by engineering work?

Engineering works have nothing to do with the point the poster is making - he is talking about infrastructure upgrades which allow more trains to travel on a route or faster trains which increases demand.

Engineering works that delay trains are something totally different, so you're either not understanding or are deliberately trying to confuse the two.
 

matt_world2004

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Accounts are audited and honestly whilst people can move things between businesses in different territories to avoid tax, to suggest that you can rig them is very hyperbolic - if it was that simple no company would ever make a loss or have to call the administrators or liquidators in as they'd fiddle the books.
You can syphon income to other business units/companies quite easily to hide it for increased subsidy/lower premium
 

F Great Eastern

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You can syphon income to other business units/companies quite easily to hide it for increased subsidy/lower premium

There is going to be at least 3-4 other bidders who will probably undercut you even if that theory was true.

What you describe only works when you're the only bidder in the room.
 

Tetchytyke

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Accounts are audited and honestly whilst people can move things between businesses in different territories to avoid tax, to suggest that you can rig them is very hyperbolic

That's what they said about Enron...

Accounts show money in and money out. The skill is having money out in the right budget to show what you want it to. VTEC losing money is politically helpful, so guess what? We saw them pull the same trick at EMT, which was also "losing millions" until the magic taxpayer money tree saved the day.
 

matt_world2004

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There is going to be at least 3-4 other bidders who will probably undercut you even if that theory was true.

What you describe only works when you're the only bidder in the room.
Why you only have to syphon enough to make the bid work and a lot of the techniqies for syphoning can be used by other bidders too. The point of syphoning is to ensure you dont pay any bonus payments to the dft and to prop up less profitable business sectors (Like buses)
 

Tetchytyke

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What you describe only works when you're the only bidder in the room.

Stagecoach *are* the only company in the room. They want a bailout, so magically they're now losing money. Just as happened at EMT.

Of course they didn't say that in the bid, they wouldn't have won then. But now they're in control. Souter is a very talented hustler.

Cynical? Moi?
 

fowler9

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Stagecoach *are* the only company in the room. They want a bailout, so magically they're now losing money. Just as happened at EMT.

Of course they didn't say that in the bid, they wouldn't have won then. But now they're in control. Souter is a very talented hustler.

Cynical? Moi?
Brian Souter has previous when it comes to business does he not.
 

F Great Eastern

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Why you only have to syphon enough to make the bid work and a lot of the techniqies for syphoning can be used by other bidders too.

Honestly, your portrayal that everyone is deliberately hugely underbidding because they know everyone else is doing the same thing is not bore out by my own experiences in tender exercises, because someone will always take advantage of such syndicate to nip ahead of the rest.

Very much one for conspiracy theories.
 

matt_world2004

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Honestly, your portrayal that everyone is deliberately hugely underbidding because they know everyone else is doing the same thing is not bore out by my own experiences in tender exercises, because someone will always take advantage of such syndicate to nip ahead of the rest.

Very much one for conspiracy theories.
Im not saying there is deliberate underbidding all you do is you set your rail operation up so that you inflate things like ticket acceptance costs to bus companies you own . split advertising and rental income into other wholly owned divisions of the company and have them not count against rail income. You then use this to avoid bonus payments to the dft and reduce the probability of profit based fines.

The avantage of doing this is that it also can be used to damage your competitors bids. If arriva want to bid for the great western franchise they have to factor in paying larger ticket acceptance costs to first berkshire services for example.
 

tbtc

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Thing is, I suspect a lot of people who are angry now are doing so because the Tories are in power. Look at social media - much of the moaning is directed at them - so if Labour had to increase fares, as it did before, I am sure people will less inclined to complain

This!

It's a nice simple thing to moan about, without having to understand the actual problems - blame the Big Bad Tories.

You've not noticed the masts going up between the Severn Tunnel and Cardiff?
Or IEPs running to Cardiff/Swansea since October?
Completely new Virgin fleet in North Wales with faster journey times to London?
New XC stock on Nottingham-Cardiff?
First use of ERTMS in the UK on the Cambrian?
No, Wales hasn't seen any investment in its railways since privatisation

Good points.

...but apart from that, what did the Romans ever do for Wales?

Worth pointing out that every pound spent on subsidising unprofitable lines (that require forty or fifty pence per mile in subsidy?) or rebuilding the Conwy Valley line each year is a pound that can't be spent on investing in new trains or electrifying lines.

In contrast, routes around London are profitable, so can justify investment.

The fact that we've kept lines like the Heart of Wales open is great but the money spent on such routes needs to be considered in the "why can't we have new trains" rants.

No, it's far easier for the DFT to use the TOCs as a shield for it's own failings so they can continue taking the praise for anything good and shift the blame to someone else for anything bad because the general public know no better. It's essentially nationalising the praise and privatising the blame - almost all of the public blame the TOCs for DFT/SRA failings, and that suits the DFT just fine

Handing the railways back to government control from private companies won't solve these issues, because these issues are caused by the government but unfortunately the general public who have little knowledge who the railway works simply think the TOC has control over many things when in fact it's the DFT.

Transpennine Express wanted to order 168 carriages with an option for 56 more. The DFT cut the order to 153 carriages with no options and resisted any attempt for the company to order a fourth car when overcrowding happened but still publicly lambasted the company for overcrowding.

200 diesel carriages were proposed for various operators following agreement with train operators but the government cancelled this project when electrification was announced.

The Thameslink and Intercity Express projects was fully managed start to finish by the government and both of them took a ridiculous amount of time since the government wanted to be hands on.

If you think that rolling stock procurement, replacement and age management is down to the TOCs then I have to say you are extremely naive and are falling right for the governments tactics of taking the praise for the good things and shifting the blame to the companies for the bad.

It's amazing how the Government have created an environment where they pull all the strings, they make all of the mistakes and people queue up to blame Richard Branson and Brian Souter for things. Why would any Government want to take full responsibility for things?

I will repeat the question again what law does the goverrnment use to prevent companies like GwR ordering more trains out of their own money. I am not talking about trains that the government are paying for or underwriting the cost of.There is no legal mechanism as far as I can see that prevents a TOC ordering their own rolling stock at market rates without goverment subsidy

The same FGW who bought some Pacers and HSTs outright, you mean?

Also the other thing is that you need to take into account the fact that the government cannot stick to what it promises with regards to infrastructure. First a line isn't going to be electrified, then it is, then it isn't.

The DFT and SRA have a lot to do with the age of rolling stock in this country because they micro-managed it for so long how it was used, ordered and replaced because they made forecasts that were flawed and wrong time and time again.

True.

Based on the past twenty years, I'd trust a TOC to deliver franchise promises more than I'd trust a politician to deliver commitments (like MML electrification). But people will blame private companies!

The statement still stands VTEC needs a bailout so it is looking increasingly less likely to return more to the DFT than DOR did.

Stagecoach pay a premium of £272m pa to the Treasury

DOR paid £216m pa in premium to the Treasury.

And that was with DOR cutting things back to the minimum (e.g. abandoning plans for daytime services to Lincoln/ Harrogate, subleasing the 180s to Northern because they didn't want them), whilst VTEC are increasing/ improving services (e.g. putting Sunderland on the map, plans to run to Middlesbrough etc once the 800/801s arrive).

Quite frankly the thought of the people in the DFT taking over all responsibility when I see how they handled growth the last few years and the IEP and TL procurement fills me with dread.

::shudders::
 

matt_world2004

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Stagecoach pay a premium of £272m pa to the Treasury

DOR paid £216m pa in premium to the Treasury.

They have asked for a bailout so over the life of the contract they are not going to have paid that £272 million p.a
 

Agent_Squash

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They have asked for a bailout so over the life of the contract they are not going to have paid that £272 million p.a
They are NOT been bailed out. That is what the Labour Party is claiming so they can gain political capital for nationalisation. The franchise is been terminated early which means the last 3 years are written off (to be paid under the new East Coast Partnership) - that doesn't mean they're not paying premiums.
 

6Gman

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I think the questions swirling around the financial transparency of the East Coast "settlement" underline why - on balance - I favour renationalisation.

Renationalisation won't mean lower fares, more seats or increased punctuality per se

It should mean clearer accountability and transparency.
 

matt_world2004

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They are NOT been bailed out. That is what the Labour Party is claiming so they can gain political capital for nationalisation. The franchise is been terminated early which means the last 3 years are written off (to be paid under the new East Coast Partnership) - that doesn't mean they're not paying premiums.
The east coast partnership is being run bythe same parent companies as vtec and paying lower premiums. This franchise has been awarded without competition so yes it is a bailout and claiming it isnt is just spin.
 

fowler9

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They are NOT been bailed out. That is what the Labour Party is claiming so they can gain political capital for nationalisation. The franchise is been terminated early which means the last 3 years are written off (to be paid under the new East Coast Partnership) - that doesn't mean they're not paying premiums.
Ha ha, they haven't been bailed out? What has happened then?
 
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