NETWORK Rail is underperforming. This is largely because its board is not rigorously held to account. There is a simple solution that I believe would be welcomed by the train operating companies, the staff and, most importantly, the long-suffering passengers.
Network Rail was created as a public interest company, and provides a vital public service. Who would be a better boss of the rail network than its passengers and the British public themselves?
Network Rail was formed in 2002 in response to the fa
ilure of Railtrack, which collapsed against the backdrop of its poor safety record. Network Rail owns and runs the rail network, as well as being responsible for the UK's major train stations.
Since it was created, Network Rail has reduced delays and improved safety. Yet it is still a long way from the service that we deserve.
A key concern is Network Rail's efficiency. The Regulator has shown that Network Rail is underperforming to the tune of £1.1bn. This works out as 19 per cent of turnover, and is the equivalent of more than 1,000 new carriages for the network each year.
Over New Year there were engineering overruns which caused, in the words of the Regulator, "a serious and unacceptable disruption to rail users and train operators".
Chaos and misery for tens of thousands of travellers ensued as they attempted to return to work after the festive period. While this could have occurred in any type of organisation, the way in which Network Rail responded has led us to question whether it really cares about the needs of passengers and the British public.
Some would say Network Rail's lack of regard for rail users was apparent even before the overruns occurred. In December, a member of the Office of Rail Regulation Railway Inspectorate informed Network Rail that, in his view, it would be possible to keep one track open through Rugby for the entire holiday period, albeit for diesel trains only.
Network Rail told him that there would be no demand for this.
Would the thousands of passengers who had their travel disrupted and were forced to make alternative arrangements have agreed?
Despite the overruns in Rugby and Liverpool Street being apparent to the company for some time, Network Rail notified the train operators only hours before services were due to come back on line. This meant that neither Virgin Trains nor One were able to make any arrangements for alternative travel or inform passengers.
This incident is just one prominent example of a broader failure to deliver. The Office of Rail Regulation imposed a fine of £14m for this failure, yet what was the board's response?
At a time when we may have expected the executive management to be fighting for their jobs, the board has instead congratulated
them for "a good year for their staff and the public". Bonuses have
flowed to their "fat cat" directors, with their chief executive receiving an extra £510,000 on top of his already healthy salary.
It is unacceptable that a taxpayer funded company is heftily
rewarding its chiefs for successes that are in the main a fallacy. Furthermore, the after tax profits of £1.2bn seem only to reflect the staggering increases in fares, not an increase in service success and delivery; nor do these profits dent significantly the net debt of the firm which stands at £19.7bn.
The current way that Network Rail is run is failing both passengers and the wider public.
While the company is accountable to a number of "public" members, the board effectively appoints these. This puts Network Rail's board in the unparalleled position of being able to choose the people to whom it is accountable.
For Network Rail to become truly accountable, we must all be given the right to become individual members. As a genuine mutual venture, it would be structured so that everyone could have a voice. It would allow us to democratically elect a Members' Council, which would have powers over the appointment and pay of Network Rail's board.
Co-operative and mutual structures deliver organisations that act in our interests. If we are to get the rail network the British public want and need, Network Rail needs to be run in a way that guarantees us real power – not just the charade of control.
I believe that Network Rail has to change.
That is why I am supporting the launch of the People's Rail campaign,
to give real control to passengers and the public.
Barry Sheerman is the Labour MP for Huddersfield and a member of the Co-operative Party that this week launched the People's Rail campaign.Further details can be found at www.peoplesrail.org
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