Tories admit to rail break-up mistake

Launching a review of railways policy, the Conservatives have acknowledged that separating responsibility for tracks and trains during privatisation was a mistake.

Shadow transport secretary Chris Grayling said on Monday that John Major's 1996 decision to create one company to manage the tracks and 25 to run the trains was flawed.

"We think that an important part of the problem lies in the structure of the industry that exists today," he said.

"We think, with hindsight, that the complete separation of track and train into separate businesses at the time of privatisation was not right for our railways.

"We think that the separation has helped push up the cost of running the railways - and hence fares - and has slowed decisions about capacity improvements.

"Too many people and organisations are now involved in getting things done - so nothing happens."

The review will lead to a strategy paper next year, with the aim being to ensure greater scope for long-term investment.

"We are not expecting to recreate British Rail, but we do want to work with the industry to identify a better structure to ensure it can meet the challenges of the next decade," says Grayling.

He was also expected to say the rail review will look at encouraging rail freight and giving workers a financial stake in the industry to cut strike action.

Transport minister Derek Twigg said the Conservatives "have finally admitted that their rail privatisation was a mistake but they have learned nothing from it".

"The suggestion now is to break up Network Rail which is delivering real improvements in performance and reliability based on record investment by this Labour government," he said.

"For the first time since the 1960s Britain's railways are carrying more than one billion passengers a year.

"The Tories real agenda is to cut that investment which they opposed every step of the way."

And Liberal Democrat transport spokesman Alistair Carmichael said: "The Tories don’t seem to have learnt anything from their past mistakes, this is merely a re-privatisation by the backdoor.

"These proposals are muddled in thinking and would be muddled in implementation. Because in most areas several companies share the track, this policy would lead to more conflicts between operators.

"By placing responsibility for maintenance back in the hands of private companies, conflicts between shareholder profit and passenger safety could lead to more Hatfields in the future."