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Ex-minister calls for radical managerial devolution of ‘inertia-ridden behemoth’ Network Rail

A new report by a former transport minister has rejected the idea of renationalising Scotland’s railways and thrown support behind the current system.

The report—commissioned by ScotRail operator Abellio and written by Tom Harris, Labour’s former transport minister—found that ministers should be “reluctant to dispense with the proven benefits” that private sector involvement in the railway industry has brought to passengers.

The former transport minister noted that a concession-based system would instead allow for a “cheaper and quicker process” of direct awards by the government, whilst ensuring there is still competition.

“Given the perception (a perception not always in line with reality) that franchises are too frequently failing to fulfil their contracts, there is more support and acceptance in the industry of the benefits of moving to a concession model and away from franchising,” he said.

Harris also recommended that Network Rail institutes a “radical reorganisation” of its own structures, meaning local management teams can refocus their efforts by becoming solely accountable to the management of the dominant TOC in the area.

“The largest inhibitor of ScotRail’s efficiency is publicly-owned Network Rail. With a new chief executive about to take the reins of the UK-wide company, there remains the possibility that the cautious moves towards decentralisation embarked upon by his predecessors will continue,” he wrote.

But something more radical than decentralisation is required, Harris argued – and while the track/train alliance model is a welcome innovation that supports much closer cooperation between organisations, it “leaves a great deal to be desired.”

“Network Rail continues to be perceived as a mighty and inertia-riven behemoth, unable (or unwilling) to grasp the need for efficiencies, too beholden to the DfT and its own central management and not nearly responsive enough to the most important people on the network: its customers,” he wrote.

“Politically it has to be accepted that UK ministers are reluctant to progress legislative devolution of Network Rail and see such moves not only as undesirable but also unnecessary. However, legislative devolution is not the only solution to Network Rail and its conservative culture.

“Managerial devolution could be instituted without the need for legislation: a decision by the executive board that local Network Rail management would take all its directions from, and seek to meet the aims of, the locally dominant TOC could see a genuine shift in the effectiveness of Network Rail at a local level, as well as of the passenger (and freight) traffic it is intended to support.”

Responding to the report, Abellio said: “It is important there is a robust evidence-base to support informed debate about how we deliver the best railway Scotland has ever had.

“Tom Harris’ report is a very welcome contribution to that debate, setting out clearly the benefits of private sector investment in our railways and the case for more local decision-making as we work to deliver easier, reliable, and affordable journeys for customers every day.”

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Image credit: Andrew Milligan, PA Images