Reports today that the Labour Party is considering re-nationalising the railways ‘North of the Border’ should re-ignite the discussion over the role of the state in public transportation. The last Conservative government’s performance in this area was far from ideal. In an admirable attempt to push through privatisation quickly in the mid-1990s, the Conservative administration decided to use the same model as that previously used for the privatisation of the utilities, i.e. one company owning the network (now Network Rail), other companies delivering services on that same network. The decision to privatise the railways was made primarily to allow private sector investment in an infrastructure sorely in need of funds. The Conservative government rightly believed that the funds necessary could not be found solely from the public purse. The private investment record since bears out that belief. The problem, however, is that the separation of track from rail has been far from successful.
Despite the problems of the privatisation model implemented, to re-nationalise now would be a step backwards. People often cite the French rail service as evidence of the need for a nationalised rail service. Although the SNCF operates an outstanding service, at what cost to the taxpayer? It has never made a profit. Japanese rail companies, however, are privately owned and no one can suggest that services there are less than outstanding (I speak from personal experience).
I have always believed that the railways should be divided (and owned) in a similar way to the pre-British Rail era, i.e. the same company owns the rails, trains and stations. Companies such as LMS, GWR and LNER were able to invest for the future, safe in the knowledge that they would retain the right to run train services in their region of the country. Government’s role could then be more strategic – insisting on the maintenance of local services, overseeing safety, etc.
Transport policy is slowly climbing the political agenda. With climate change at the fore-front of people’s minds, and the increasing density of living accomodation, the need for fast, effective and environmentally-sound public transportation can only increase. The Conservative Party can lead the way in this area by using the private sector to deliver the best rail services. By going down the re-nationalisation path, the Labour Party is offering us an open goal. Let’s make sure we are on target.

