11.03.16
McLoughlin endorses Network Rail asset sales
Selling assets is an option that Network Rail ‘should consider’, transport secretary Patrick McLoughlin told MPs yesterday.
Network Rail has hired banking firm Citigroup to look at options for plugging its £2.5bn funding black hole, with the sale of 18 major stations including London Waterloo, Manchester Piccadilly and Birmingham New Street on the table.
In response to a question by Susan Elan Jones, Labour MP for Clwyd South, McLoughlin expressed support for filling the debt with asset sales.
He said: “If Network Rail is sitting on certain assets, should it consider disposing of some of them so that we can carry on improving the overall system? Yes, it should. I do not see anything wrong with that.”
Rail minister Claire Perry MP last week confirmed that Citigroup will report back on the options by the end of the year. However, anti-privatisation group ‘We Own It’ launched a campaign against the sale of the stations, and a poll of RTM readers also found that 47% opposed the move.
Network Rail also confirmed it is considering selling off electrical power assets.
In the Commons yesterday, McLoughlin refused to commit to opposing the privatisation of Network Rail following a question from Labour MP Dr Alan Whitehead.
When asked by Conservative MP David Nuttall if he agreed that privatisation in other sectors had improved efficiency, he replied: “I do agree, but there is obviously responsibility for a system of railway maintenance and improvement, which is very important. I will consider any other ways in which we can involve the private sector in providing better railway services for our constituents.”
The final version of the Shaw report into the future of Network Rail is due to be published next week, and transport minister Lord Ahmad of Wimbledon has said that the department will not rule out any options that could be recommended.