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June 17, 2004

Trains

Is there a clue for the future of the railways in the UK hidden in the announcement that the Scottish Executive is to gain control of spending on both trains and tracks in Scotland? Although this leaves the franchise operators in place, it represents a significant step towards a halfway house re-nationalised railway system, at least in Scotland. This rationalisation is one of the first fruits of the Government's rail review, the objective of which was to streamline the industry. Whether the endgame will result in a nationalised railway network is unknown at present, but in light of the huge levels of public funding, it would make sense for the tax payers to realise all the benefits, without shareholders creaming a little off the top for dividends. In fact, with the ScotRail franchise going to First Group who already control 70% of buses in Scotland, and who's operational headquarters are in Aberdeen, it might be interesting to consider whether Holyrood will be taking this consolidation any further? --------

Posted by Clive on June 17, 2004 2:15 PM in the category Old Stuff

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