"Network Rail had made a start in improving operational performance and cost control..." commented the Public Accounts Committee today as it published its report about the company.
The Committee was reporting on a National Audit Office (NAO) report, 'Network Rail - making a fresh start', which was published in May 2004 and followed a Public Accounts Committee hearing which also took place during that month.
John Armitt, Network Rail's Chief Executive, said: "The report recognises the progress the company had made in its first 18 months of ownership of the rail network in improving performance and getting costs under control.
"Some 14 months later, Network Rail's progress has accelerated. Train performance has markedly improved, delays have come down and costs have been cut by hundreds of millions of pounds. Since the report, Network Rail has launched its long-term financing vehicle - the Debt Issuance Programme, which seeks to reduce its borrowing costs - and has undertaken other huge initiatives, such as taking maintenance in-house, which has delivered performance improvement and reduced costs."
The performance of the company has markedly improved since the time of the NAO report and the Public Accounts Committee's hearing:
* Network Rail has reduced train delays by 17% from 13.7m minutes a year ago to 11.4m
* The moving annual average for train punctuality now stands at 84.3% (June '05). A year ago it was 81.2%
* In April, Network Rail reported an operating profit of £455m compared to a loss of £710m last year
* Over 30,000 people now work for the company having taken the decision to bring maintenance in-house. 12 months ago Network Rail consisted of just 15,000 employees
John Armitt concluded: "We are dealing with the inefficiencies we inherited in October 2002. We have delivered high levels of sustained investment in the railway, improved train performance, while reducing costs. We have set ourselves stringent performance targets and are in line to meet the challenging efficiency target set by the independent rail regulator for the next five years.
"All our people are committed to building on the progress that has been made, as we continue our work to rebuild and renew Britain's railway."
Notes to Editors
1. Network Rail is the 'not for dividend' owner and operator of Britain's railway infrastructure, which includes the tracks, signals, tunnels, bridges, viaducts, level crossings and stations - the largest of which we also manage
2. We are working to rebuild Britain's railway and provide a safe, reliable and efficient rail infrastructure for freight and passenger trains to use
3. Our website: www.networkrail.co.uk
Media contact: 020 7557 8292
