18.08.15
Corbyn’s Labour would renationalise rail and ‘cut ROSCOs out’
A Labour government under the leadership of Jeremy Corbyn would introduce a new Railways Act in 2020 to begin the process of bringing the railways into public control.
The Labour leadership frontrunner unveiled his ‘Public Railways’ plans at King’s Cross station this morning, adding that the current rail franchising process is “incredibly expensive and wasteful, both to bidding companies (which pass on costs through higher fares) and to the government to administer the process”.
Corbyn, the left-wing Islington North MP, added that in opposition Labour – under both John Smith and Tony Blair initially – promised to bring the railways back into public ownership after the rail network was privatised under the Railways Act 1993.
“The privatisation of the railways fragmented our rail network, meaning the most expensive and confusing ticketing structures in Europe,” said Corbyn.
“Our rail network suffers from massive underinvestment, recently cut again by this government, while larcenous levels of profiteering continue. We need to rebuild an integrated publicly owned railway network that is run by the people for the people.”
Under his proposals, he said all parts of the railway should work together for the common good – with “strategic management” representing the industry, government (local and national), passengers and workers. “A more co-operative model of public ownership”.
With regards to rolling stock, Corbyn added that the train carriages “we sit or too often stand in” are leased to franchises by rolling stock companies (ROSCOs) “in an incredibly expensive process that has left our rolling stock outdated on many lines”.
He said that under public ownership, the government should cut out the ROSCO intermediaries and procure rolling stock directly.
“These leasing companies are making double-digit profit margins, causing higher fares,” he said. “The leasing process should be replaced by a long-term procurement strategy based on strategic long-term investment in the railways that develops UK manufacturing, skills and jobs.”
Mick Whelan, general secretary of ASLEF, the train drivers' union, said: “Jeremy has been a breath of fresh air in politics this year. He has got people excited about politics again. That's why we are backing him for leadership of the Labour Party. Jeremy would be good for the party, good for the railways, and very good for Britain.”
(Photo from this morning's event at King's Cross by Lauren Hurley)