We don't want any new trains !

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45002
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Post by 45002 »

Elojikal wrote:I'm not going to get too deep into this argument but I will agree this thread is being hijacked by the usual socialist revolutionaries who are in favour of a nationalised railway on an idealogical basis and view BR through their rose tinted glasses.

As for most of the railways that never made any money they were the ones that were built purely to fight off competition and it was known they served no other purpose and were unlikely to ever make any money, they were also the lines that bore the brunt of the Beeching cuts and yet oddly the nationalised railways lobby thinks they should be brought back!
One could say usual capitaists revolutionaries

I dont think are any " usual socialist revolutionaries" just want a Railway with investment put in and run under one body and run by people who know what they are doing and not just intrested in Profits

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Post by Elojikal »

Who is that then? In all the time BR was a national company when it did make any profits they were gobbled up by the treasury and little or none of it went back to BR.

And the railway industry if full of people who know what they are doing - whether or not the DfT wants to let them do what they do best is another matter. For all the failures of privatisation there have been some successes - successes notable for offering a better standard of service than BR did.
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Post by jbilton »

Elojikal wrote:I'm not going to get too deep into this argument but I will agree this thread is being hijacked by the usual socialist revolutionaries who are in favour of a nationalised railway on an idealogical basis and view BR through their rose tinted glasses.

!
Sorry...but why is it we're expected to take your statement as the truth...but ours are false.
AFAIK BR was making money 'hand over fist' towards the end...as more people began to use the railways (nothing to do with privatisation).
If they had been allowed to continue there would be no subsidiaries to pay these days.....and I would be paying less income tax.
This is fact...not fiction.
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Post by BR7MT »

jbilton wrote:AFAIK BR was making money 'hand over fist' towards the end...as more people began to use the railways (nothing to do with privatisation).
Jon - do you have a source for the above? At the lectures I have been to, given by senior members in the current railway industry that were near the top of BR at Privatisation, they always say that BR overall was just about breaking even.

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Dan
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Post by buffy500 »

Well, to be fair, that would be a much better result than the current situation.
Now, it may not be so clear if there would have been any more investment if BR had still been here,
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Post by arabiandisco »

It's hard to imagine, but I suspect a nationalised railway would be subject to even more DfT meddling than the current structure.

If we're going to have this debate, then I'm going to advocate getting off the fence, and either having proper privatisation with significant (though not necessarily complete) deregulation or a proper nationalised industry. The ridiculous half way scenario we have at the moment means we get the worst of both worlds - private organisations make profits without being incentivised to invest for the future, and a government who won't provide the investment either.

Private organisations should be able to invest without government approval - for example if a TOC wanted to electrify the GWML, then they should be free to raise the capital and do it, rather than go via the DfT and get knocked back.
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Post by jbilton »

BR7MT wrote:
jbilton wrote:AFAIK BR was making money 'hand over fist' towards the end...as more people began to use the railways (nothing to do with privatisation).
Jon - do you have a source for the above? At the lectures I have been to, given by senior members in the current railway industry that were near the top of BR at Privatisation, they always say that BR overall was just about breaking even.

Regards,

Dan
Hi Dan
Only from the books that were written at the time, I have no insider knowledge.
I would agree with Dave ....... breaking even would suffice.
I would be interested to see figures of total public spending on the railways since privatisation ....... but no government is going to let the tax payers see that.
And I would agree with 'arabiandiscos' comments.
Its a complete mess....and some people have made a fortune out of Joe public .
I just hope voters remember it was the Conservative party who did it, at the next election ....... and any election for next 100 years.
Trouble is 'New Labour' is too Conservative to do anything about it.
So we'll just keep paying high taxes and not getting any trains for it.
Cheers
Jon
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Post by Elojikal »

jbilton wrote:Sorry...but why is it we're expected to take your statement as the truth...but ours are false.
AFAIK BR was making money 'hand over fist' towards the end...as more people began to use the railways (nothing to do with privatisation).
If they had been allowed to continue there would be no subsidiaries to pay these days.....and I would be paying less income tax.
This is fact...not fiction.
Cheers
Jon
I find it interesting that you make a point about how I must feel my statement is the truth and yours is false (you're putting words into my mouth there) and yet you go on to base an act of supposition as an article of fact.

BR was making money towards the end, no different to usual when the times were good, hands over fist? Well the Intercity and NSE sectors were in good health but the rest is debatable.

Now the major flaw to your argument, the act of supposition. You state that if BR had been allowed to continue as they were then there would be no need for subsidy and you would be paying less income tax. You state this as categorical.

BR no longer exists and has not existed for 10 years now, therefore there is no model a present day BR could be based upon, but we can make some basic assumptions (without stating them as fact) that;

1) The massive replacement of MK1 stock in the south would still have had to take place.
2) This would have neccessitated the power upgrades to the electrified parts of the network in the south.
3) The WCML would still have needed upgrading and new stock would still have needed ordering to replace the fleets of aging HSTs and Class 47+MKII rakes.
4) If the railway was still nationalised then then BR would have been responsible for the construction of the CTRL and the procurement of the new Kent Coast high speed trains.
5) If BR had continued with the development of ATP then it would have eventually been rolled out across the whole of the network.
6) Much of the damage to the finaces of the railway post-privatisation were caused by the fatal accidents that occurred. Some of these accidents had their roots in working practices from the BR days and as Clapham and Hither Green had shown railway accidents can easily happen under nationalised railways especially where budget pressures are involved. Therefore it can be assumed that if any disasters had occurred since 1995 they would have also impacted BR.

A substantial amount of investment that would be required that could not be covered by any operating profit made by BR unless things were done on the cheap as had been the case for most of BRs history.

Therefore I can rightly argue that while BR might be able to cover the cost of running services during a strong economic period such as now without requiring subsidy it would still have required a large amount of subsidy for all of the above required investment.

Lastly, based on historical precedent, rather than doubling services as has been the case in many areas since privatisation, to control the increase in demand for rail travel during the strong economic growth of recent years BR would likely have dramatically increased fares even beyond what they presently are at.*

This would mean that;

A) You may have been paying less to BR indirectly through income tax but you may have been paying more directly through fares.

B) Without a significant increase in service frequencies there would be even more people using cars than there already are which would put an even greater strain on the motorways requiring the government to further invest in them so you could be paying more in income tax to the construction and upkeep of new motorways or upgrading of existing roads. There is no evidence to suggest that the present Labour government would not have been just as happy as the previous Tory government to invest in the roads over rail.



* - Yes, I am expecting the anti-Thatcher rant.
Last edited by Elojikal on Wed Feb 07, 2007 12:26 am, edited 1 time in total.
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Post by 45002 »

It was under Chris Green Era when he was at NSE then moved to IC was the most successfully days of BR yes it didnt make much profit if any

He and ofters from BR days wanted the investment to carry more of the work they had done ,but the Government of the daywhere more intrested in just selling everythink off

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Post by thenudehamster »

I'm interested in knowing which revisionist treatises many of these comments originate from.

Yes, Margaret Thatcher's government set up the privatisation programme, and not in the best way that it could have been done. However, as with the Channel Tunnel project and many other non-railway privatisations, it was done so that the taxpayer did not have to keep subsidising uneconomic industries. Like it or not, restrictive practices introduced by previous Labour administrations led to much of the losses in many nationalised industries, and power-hungry Trades Unions (and on the whole I am in favour of TUs if they're run as they should be) only made the problems worse.
British Railways lost money from day one; it have barely been in existence ten years when they had to call in an outside expert to try to stop the haemorrhage of cash, the infamous Richard Beeching. Even then, they only took notice of half his proposals - and wondered why the losses continued. The parts of his plan they did implement (like dieselisation) were done is such a cockeyed and haphazard fashion it's no wonder it kept losing money.

Chris Green's tenure at both NSE and InterCity could not have happened under the traditional nationalised behemoth of British Railways. Only when it was internally privatised into separate, competing, operating companies were sufficient economies able to be made to enable an apparent profit to be made. What's hidden, of course, is the massive subsidy from central government to keep loss making services running. Governments have always considered that this subsidy is more than enough money down the railway drain; no wonder they never wanted to stump up more for investment and modernisation.
Private industry, when given the opportunity to invest in running trains went at it with gusto. They raised money from private sources, invested in massive amounts of new rolling stock - even though the cockeyed governmental rules made it difficult, and that have raised the numbers of passenger miles travelled year upon year. More new trains have been introduced in the few years since privatisation than in the previous thirty years. More investment in trackage improvements, signalling upgrades, station improvement and rolling technology have made speeds possible that had not been seen since the thirties. Under BR the average speed of trains went down by a considerable percentage - which allowed air travel and car travel to become more than just competition, it gave them an unfair advantage. People travel now by train because they don't want to suffer traffic, and they don't want the hassles of air travel for a six or seven hour journey - and they can do that because private investment, sound commercial management (instead of politically motivated management) and technological advancement have made competitive speeds possible over distances of less than about 800 miles.

Whether the socialist-thinking types like it or not, privatisation of the railways, even this half-hearted set up we have, works, and works a damned sight better than a government run railway which was never more than a political whipping boy. As long as governments keep their hand off the management of the railways, they can be profitable. Politicians, especially socialist ones, are not businessmen, despite economics degrees; they are, and always will be, politicians first and foremost.
Nationalisation of railways only works when the politicians of the country realise that it costs money to buy and run trains; it cannot be done on a shoestring - which is what governments have always done with British railways.

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Post by andrewtoplis »

OK, a few things...sorry its in reverse order:

MAJOR's government privatised the railways, not Thatcher who described it as 'a privatisation too far'.
British Railways lost money from day one;
Plenty of railways have lost money from day one and will continue to do so because the economic conditions have changed...and we now have a thing called the CAR, which has removed much of the traffic railways were meant to serve...this has happened across the world. If you look carefully you will probably find some TOCs who make a loss and would go bust without subsidy. If its ok for them to do that, why not BR?
Whether the socialist-thinking types like it or not, privatisation of the railways, even this half-hearted set up we have, works, and works a damned sight better than a government run railway which was never more than a political whipping boy.
How does the setup now work better than BR? What performance indicator are you basing that on, presumably not on anything financial because we know that the railways cost more in one year now than BR was given in three. PPM is worse in some sectors than under BR.
As long as governments keep their hand off the management of the railways,


But thats the problem, isnt it? They DONT keep their hands off and have arguably more control now than when BR was run as a semi-autonomous public sector company. The DfT even writes half the timetables and specifies exactly what rolling stock will go where and when. Government never had this control in the past. And when you say that politicians are not businessmen, dont forget that Conservative ones designed the current structure which even they will admit is far from the most efficient way of running the railway industry.
they can be profitable.
There you go generalising again...'they' can only hope to be profitable by concentrating on existing profit centres such as Intercity and using this to subsidise the lines which have always made a loss. Its what the railway companies have done since the Stockton and Darlington was built. Breaking everything up into artificial franchise constructs often removes the profit/loss balance, so some make money and others lose it.
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Post by BR7MT »

Well, the current franchising mantra of getting the TOC to pay a premium payment to the Government is just plain stupid. For a start, they will now slash costs drastically in order to generate the same profit for shareholders, whilst still paying the Government the required premium. Yet the morons in Whitehall cannot see this...

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Post by Elojikal »

I think they can see it they just don't care, as long as the TOCs cram more people into the same amount of space and overcrowding goes down without any further investment being required then as far as they're concerned everything is right, take the money and run and get back at the TOCs for all the subsidy they've given out over the last decade. Trouble is it is the TOCs who have needed the least amounty of subsidy or no subsidy at all who are being bled dry by the treasury because they know those TOCs can cough it up...
The rage for railroads is so great that many will be laid in parts where they will not pay.
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Post by arabiandisco »

BR7MT wrote:Well, the current franchising mantra of getting the TOC to pay a premium payment to the Government is just plain stupid. For a start, they will now slash costs drastically in order to generate the same profit for shareholders, whilst still paying the Government the required premium. Yet the morons in Whitehall cannot see this...

Regards,

Dan
They can. Noone has yet risen to the point I've made repeatedly - The Government wants people OFF the railways. They make masses of money from people who drive (fuel tax, road fund licence, tax on insurance, tax on car purchases...) which more than covers the costs of the road network, whilst the railways need subsidising.

The fiasco caused by the DfT on the new First Great Western management contract (it's not a franchise by any definition of the word that I've heard) is designed to force people into their cars, and provide a bare minimum service for those who can't afford to drive.

I admit to stealing this, and the management contract thing, from Alan Williams, but the premium thing should be more accurately referred to as "tax". A proportion of the money you and I pay for a train ticket is mandated to go to the Treasury. That is pretty much the exact definition if a tax.
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Post by Elojikal »

As conspiracy theories go, I'm still not convinced by yours. :P
The rage for railroads is so great that many will be laid in parts where they will not pay.
George Stephenson, 1824.
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