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8 October 2002
ORR/16/02
Speaking in London today at the Waterfront conference, Rail Regulation: Getting it Right, the Rail Regulator Tom Winsor welcomed the advent of Network Rail with its potential for strong, competent, and successful provision of infrastructure services, in an atmosphere of mutual respect and shared endeavour between the providers and the users of the railway network. Tom Winsor said:
Much has happened to the railway industry in the last few years, especially the last one, and much has changed. The confidence of the industry, its funders and the public has been shaken, but it has not been destroyed. However, the outcome is one which I believe is positive and gives strong grounds for optimism.
Network Rail has arrived with strong management and a powerful commitment to delivery to customers and adherence to the public interest - I very much welcome that. Independent economic regulation, flexible and adapted to the changed environment of the industry, is an essential condition for success and investment. This means the instruments of accountability should remain in place and be reformed in accordance with the programme which I have been following. They are the network licence, the access contracts, the network code and the technical standards. Network Rail should focus on serving the customers through the competent and efficient operation, maintenance and renewal of the network.
Key to effective delivery is the issue of providing the incentives to deliver in a company which does not have the pressure of equity shareholders. This is something we shall be looking at further as part of my recently announced interim review, but an essential part of the new architecture is the introduction of a new network licence condition providing for a management incentive plan which will link a substantial part of senior managements remuneration to achieving customer objectives. This plan will be sent to me and published on an annual basis.
Working together in a new spirit of constructive engagement, with each party acknowledging that everyone has their job to do and focussed on delivery, gives grounds for considerable optimism. I am happy today to recommit my colleagues and myself to giving this new structure and framework for the industry every possible encouragement and support. The industry and the public have endured for long enough. Now is the time for delivery.
The full text of the Regulators speech to the Waterfront Conference Rail regulation: Getting it Right is available from the ORR website and from the ORR Librarian, Sue MacSwan, 1 Waterhouse Square, 138-142 Holborn, London EC1N TTQ, tel: 020 7282 2001, fax: 020 7282 3045, e-mail: rail-library @orr.gsi.giv.uk.
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