01 August 2003
Rail regulator Tom Winsor has told Network Rail that it needs to save £2bn a year and curb its inefficiency.
The rail firm had asked for £6bn a year to maintain and improve the system – against £2.8bn originally budgeted – after taking a detailed look at the condition of the system it inherited from Railtrack.
But Winsor said on July 24 that Network Rail couldn't continue spending at its current rate and to delay needed improvement work, including a £10m upgrade to the West Coast Main Line, in order to prune spending to £4bn a year within five years.
'Costs have gone out of control, they have exploded,' he said. 'The inefficiency that has gone into the company is quite remarkable and my decision is all about getting out of the system unnecessary cost.'
He added: 'What taxpayers and the travelling public are not interested in doing is paying much higher than is necessary for a safe, reliable and punctual railway. They will get that, but they want to have it at a proper price, with value for money.'
Strategic Rail Authority chair Richard Bowker said Winsor's document was a 'major and welcome part of delivering a safer, reliable and affordable railway.'
Chris Green, chief executive of Virgin Trains, which operates the West Coast line, said: 'We would be deeply concerned over yet another delay to the West Coast upgrade and its benefits to passengers.'
Transport Secretary Alistair Darling has approved the £1.5bn East London Line project, the country's second-largest current rail project after the West Coast Main Line. It will mean that a minor part of London Underground, which is capable of taking surface trains, is extended both north and south, providing a link across the eastern side of the capital.
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