23 July 2004
Britain's rail network will 'inevitably' be taken back into state control, MPs and union leaders argued this week as Labour set out its transport vision for the next three decades.
As Transport Secretary Alistair Darling announced plans to increase the public sector subsidy for trains by more than £2bn over the next three years, colleagues urged ministers to go further and take direct control of the network.
Public ownership is the only way forward, said Labour MP John McDonnell at the Westminster launch of a report by think-tank Catalyst, which is critical of the government's rail policies.
'I think there's an inevitability about this process. What we are trying to do is speed up the process,' he told Public Finance. McDonnell said it was a case of finding the political will among ministers, something he argued may be more likely if transport becomes one of the hot political issues at the next general election.
Catalyst's report, which is supported by train unions Aslef, RMT and TSSA, advocates the 'reintegration' into government control of track renewal work and the regulation of rolling stock companies.
It claims that performance levels have not recovered from the Hatfield crash and that government targets for 50% passenger and 80% freight growth will not be met under the current system.
Unless the government moves decisively, Catalyst warns, 'future generations may look back on this episode as one of the greatest disappointments and missed opportunities of Labour's period in office'.
The government was praised for scrapping the Strategic Rail Authority, announced last week, and exercising tighter control through Network Rail. But so far Darling has resisted calls to go further.
The transport secretary, who released his Future of transport white paper on July 20, confirmed that the East London tube line extension would go ahead and announced £340m funding for transport schemes to support the capital's bid for the 2012 Olympics.
He also gave government backing to plans to build Crossrail in the capital, a £10bn project that will link east and west London. How it will be funded, though, remains unclear.
Darling said the government would 'work with the mayor and the London business community to find a funding solution where everyone pays their fair share'. This could include an increased levy on business rates, greater borrowing powers for the mayor and public subsidies.
PFjul2004
