Son of Railtrack less accountable than Enron

19 Sep 02
The structure of Network Rail, the not-for-profit successor to Railtrack, will be 'unaccountable, introverted and deeply flawed', according to a leading think-tank.

20 September 2002

The New Economics Foundation (NEF) said the body, which is to take over the running of Britain's rail infrastructure next month, suffered from 'bureaucratic arrogance'.

The criticism was contained in A mutual trend by Dr Johnston Birchall, which was published on September 16.

Birchall, a senior lecturer at Stirling University and senior associate with the NEF, argued that Network Rail should include key stakeholder groups such as train operating companies, the workforce trade unions, the government and consumer representatives.

The foundation slated Network Rail for allowing its management board too much say in the selection of the 'members', or governors, who are meant to hold the company to account.

The report said: 'This model is even less accountable than the shareholder ownership structure that it is supposed to replace and it is far less democratic than either shareholding or nationalisation.'

Ed Mayo, NEF director, said: 'This is a missed opportunity to turn the widespread anger and frustration with Railtrack into goodwill by involving passengers and staff in a more open and accountable model of governance. Railtrack is dead, but the culture of bureaucratic arrogance lives on. Network Rail will be less accountable than Enron and WorldCom ever were.'

Birchall called for consumer representatives to be appointed to the Network Rail board from the Passengers Rail Council.


PFsep2002

Did you enjoy this article?

AddToAny

Top