Network Rail has welcomed the publication of the Government White Paper on the future of the railways, with Chairman Ian McAllister commenting that it provides "a platform for a customer focused and high performing railway."
The White Paper, which follows the six-month Government Rail Review, proposes a number of significant changes to the structure of the railway. The reforms are designed to deliver improvements to performance and efficiency and build on the already close and improving collaboration between Network Rail and train operators.
A number of these changes will have a direct impact on Network Rail, including making the Company the single point of accountability to Government for rail performance and tasking Network Rail with responsibility for explaining and accounting for performance to the public whilst train operators remain accountable to their passengers.
Network Rail will deliver its responsibilities through a number of changes. In Particular
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Integrated Control Centres under Network Rail leadership will be created to Cover the entire network.
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Network Rail will have clearer powers to direct network services and restore services to normal after disruption.
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Responsibility to devise the timetable will pass to Network Rail, with input from train operators.
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Network Rail will be responsible for drawing up Route Utilisation Strategies to optimise use of each part of the railway network.
The White Paper also proposes the creation of a new regulatory contract between Network Rail and the Department for Transport. This contract will specify the high-level outputs on capacity and reliability which Network Rail has to deliver, and the income the Company will receive for doing so.
Network Rail Chairman, Ian McAllister, said: "The White Paper provides a platform to build a customer focused and high performing railway. By working in close partnership with train operators who have grown demand for rail travel in recent years, we can now play our part to deliver a better and more reliable railway service to the travelling public.
"The White Paper places significant new responsibilities on Network Rail. Having taken maintenance in-house, reduced delays and improved the efficiency of the railway within the last twelve months, we look forward to taking on fresh challenges within this new structure.
"For Network Rail, the hard work continues. The White Paper has clarified responsibilities and given us all a sure footing on which we must build. Everyone at Network Rail will roll up their sleeves and get on with the job.
"We renew our pledge to work closely with our colleagues in the train and freight companies to help them meet the expectations of railways users."
Keith Ludeman, ATOC chairman said: "The White Paper will help create a more joined-up railway and it recognises the key role of train operators as the best way to deliver benefits for passengers working in close partnership with Network Rail.
"It provides a clearer way forward and we now look forward to doing the detailed work necessary to make these changes effective, in partnership with industry colleagues.
"It is our collective job to deliver the railway the customer wants. Working more closely with Network Rail will help us achieve our goal of continuing to change Britain's railways for the better - now the fastest growing in Europe."
Network Rail is committed to working with the Government, the Office of Rail Regulation and partners in the rail industry to deliver the changes determined in the White Paper. The proposals will not take effect for some months and until then current roles and responsibilities continue.
The Company will work with train operators and the ORR to develop a new performance regime and delay attribution process based around common incentives, which work in the interests of passengers.
It is vital that the changes proposed by the White Paper build on the performance improvements seen in the last twelve months that saw a one million minute reduction in delay minutes in 2003/04. The improvement has continued this year, with a further 9% reduction in delays during the first quarter of 2004/05. Delays now stand at their lowest for four years.
The changes proposed must also build on the recent strides to deliver better efficiency in the industry. Network Rail expenditure last year was £1.1bn below budget and the Company is committed to delivering a 31% efficiency target over the next five years. The forecast cost of upgrading the West Coast mainline has been reduced from £9.9bn to £7.6bn since Network Rail assumed responsibility for the delivery of the project.
Reforming corporate governance
Network Rail recognises that with the new responsibilities it will acquire as a result of the White Paper, changes will be needed to the Company's corporate governance structure.
The proposed changes will require detailed discussions with Network Rail's Members, but initially the Company is proposing:
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Inviting train operators to nominate a Non-Executive Director to the Board of Network Rail
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Consulting with the Rail Passengers Council on the appointment of a further Non-Executive Director to add to the already considerable experience of managing customer service on the Board
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Providing Members access to independent reporting of Company performance provided by the ORR
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Encouraging Members to focus their attention on a particular Route in addition to scrutiny of the Company's overall performance
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Reviewing the management incentive plan to ensure the interests of Network Rail and its stakeholders are fully aligned. This will include exploring with freight operators whether the MIP should include a specific measure of freight outputs.
Notes to editors:
For full details of the content of the White Paper, please see the Department for
Transport press release titled 'A new structure to deliver a better railway'.
Network Rail is the 'not for dividend' operator of Britain's rail network. Our objective is to provide safe, reliable and efficient rail infrastructure.
We own and maintain the tracks, signals, tunnels, bridges, viaducts, and level crossings. We also own the network's 2,500 stations, and manage the largest and the busiest. We provide access to the tracks for every passenger and freight train, timetable their journeys, and operate the signalling, which controls their movements.
Network Rail is a company limited by guarantee with members instead of shareholders. It is run as a commercial organisation, but any operating surplus is re-invested in the rail network.
Our core focus is the operation, maintenance and renewal of existing rail infrastructure, with the Strategic Rail Authority taking the lead on enhancement projects.
We have set clear targets to improve performance and reduce costs, but safety is always at the forefront of our activities as we rebuild Britain's railway.
Details about the Company can be found on the Network Rail web site: www.networkrail.co.uk
For media enquiries please contact the Network Rail press office on
020 7557 8292 / 3
