Renationalised rail ‘could save taxpayers £1.2bn’

The report for Aslef, the Rail, Maritime and Transport union, the Transport Salaried Staffs Association and Unite said savings could be achieved through cheaper borrowing costs, removing shareholders’ dividends and reducing fragmentation.

The study, by the Transport for Quality of Life think tank, said £300m alone could be saved by taking train operating companies into public ownership.

A survey of 2,000 people as part of the research found that 71 per cent believed privatised train companies were more concerned with making profits than providing affordable fares and a decent service for passengers.

RMT general secretary Bob Crow said the findings countered recommendations in the recent McNulty review of the railway industry, which are being studied by the Government.

He said: “This research nails the lie of the McNulty review that the answer to the inefficiencies and overcharging on Britain’s railways is more cuts, more rip-off opportunities for big business and higher fares.

Aslef general secretary Keith Norman said: “Last week, Transport Secretary Philip Hammond warned that the railways were becoming a rich man’s toy. To prevent that disaster he needs to control the industry, and that can only be done by ending the anarchic free-for-all that’s emerged from the discredited private franchise system.”

TSSA assistant general secretary Manuel Cortes said: “We can no longer continue to tinker at the edges. Privatisation has failed passengers, workers, business and the economy. We now need to open our minds to bold new alternatives that serve the interests of passengers and taxpayers.”

A Department for Transport spokesman said: “We welcome the RMT’s recognition that the cost of rail needs to be reduced, however, the case for renationalisation was examined as part of Sir Roy McNulty’s study. He concluded that the time, effort and cost of renationalisation means this is not the right way forward.”