11 July 2003
Strategic Rail Authority chair Richard Bowker launched a robust defence of rail privatisation at a parliamentary hearing on July 8, telling sceptical MPs that he wanted to 'drive a stake through the heart' of renationalisation.
He had been called before the Commons' transport select committee to explain how the railways are managed. Since privatisation, there were 20% more trains, 30% more passengers and 50% more freight, he said. 'There is a strong case for rail in 2003. It moves 500,000 people in and out of London every day and there is no other way to do that. It is dominant on some intercity routes and is essential to freight.'
Bowker said the fundamental problem of the industry was not 'who owns what, but the people in it and the management of those people and processes day to day'.
But MPs were puzzled when Bowker explained how each rail region has a joint board comprising the SRA, Network Rail, train operators and maintenance contractors, which 'run their region as if it were a company'. Committee chair Gwyneth Dunwoody asked why the authority encouraged integration at regional level but not nationally, as had happened under British Rail.
Bowker replied: 'The only people who would benefit from changing the structure again would be bankers and lawyers.'
Tackled by Labour MP George Stephenson on fare increases to meet increased costs, Bowker conceded that inefficiencies by Network Rail played a part. But he insisted that the bulk of the extra cost was accounted for by increased maintenance and improvements, which had to be paid for from taxes or fares.
Bowker said that Connex South-East had been ousted from its franchise last month because the company had failed to stick to a detailed improvement plan. This had been a condition of its £58m bailout by the SRA. The authority will seek a private sector replacement no matter how well the SRA's temporary in-house operation performs. 'I believe we get better efficiency, operation and customer focus from a private operator,' he said.
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