Would a not-for-profit TOC work?

[me123]

The M74 was built in the short term, and wasn't initially planned to go all the way to England. It was initially opened as the Hamilton by-pass (current junctions 4-8). It was then extended South to J12 in the '80s. In the early '90s, the Tory government built the new A74(M) to the Cumberland Gap, and they had the sense to build it with 3 lanes. Sadly, we've not yet widened the road between junction 6 and junction 12. Like so many things, it's a bit of a historical anomaly. Forward planning all those years ago would have seen it built wider, but given that the Edinburgh-Glasgow M8 was (and still is) only two lanes, it's easy to see why they didn't foresee the need or demand.

You'll be pleased to know that the M74 completion will be three lanes in each direction, and there will be some further widening on the existing road between Junction 4-6 as part of the M74/M73/M8 network improvements. I don't think there's a scheme in the pipeline to widen the road, and although it is a bit of a pain I don't think it's a particularly serious problem at the moment. Certainly not as bad as the M8. I think you'd struggle to warrant widening almost 17 miles of rural motorway at this moment in time.

 

[DarloRich]

Network Rail is a not for profit Company, a very bad example of reinvesting the profits.

No - Network Rail is a not for dividend company - there is a difference!

 

[laird]

No - Network Rail is a not for dividend company - there is a difference!

In which case should the question become would a not for dividend company work as a train operator?

 

[deltic]

In which case should the question become would a not for dividend company work as a train operator?

Yes - there are lots of not for dividend rail companies - they run the majority of preserved lines in the country! There are also lots of not for dividend companies operating in the UK - they tend to operate as charities but the largest are major companies in their own right - the National Trust turns over £300m a year.

No reason why a not for dividend company could not run a TOC. The biggest issue is one of credibility with the DfT. Who would set one up and why, who would provide the financial guarantees required and what would the TOC do with its surpluses. To win the franchise in the first place it would have to bid more aggressively than its competitors meaning less "profit".

Scotrail on a turnover of £524m in 2010 made a profit of £15.6m - which would allow a 3% fare cut or buy a few extra coaches or employ 500 or so extra staff if the money was reinvested in the rail network.

So the benefits of a not for dividend TOC would not be all that great.

 

[HST-DAVE]

A classic successful example in business is the IKEA franchise, they are owned by an IKEA owned charity and have over £35billion* in reserves, not paid out; no dividends payable etc...
(*Estimated; no up to date accounts published).

 

[Zoe]

The A9 from Stirling to Perth could also do with sorting out, first of all you have a roundabout between the M80 and A9 and there are quite a few flat junctions on the way to Perth where traffic has to cross a 70 mph dual carriageway.