his intention to amend Railtrack's network licence to include three new conditions concerning (1) the creation of a register of Railtracks assets and their condition, (2) more effective means of monitoring and reporting on the condition of the company's assets, and (3) a binding code of practice on Railtrack's dealings with its dependent customers.
In his response to the Booz Allen and Hamilton report into Railtrack's track record, Mr Winsor said : "At the heart of that report are criticisms of the company's knowledge of its assets and its management of them. Moreover, by altering its asset maintenance policy so as to extend the average age of assets before they are renewed, Railtrack may well be focussing too much on the short term and storing up serious problems for the future. In these and many other respects, Railtrack should be leading the industry, taking a long-term view and investing wisely and well in the care and maintenance of its assets, as well as enhancing them".
He has therefore set out a list of actions he expects of Railtrack to improve asset management information both in terms of condition and capability of the assets.
He has also made the enforcement order he proposed in August requiring Railtrack to improve passenger train performance by 12.7% in 1999-2000. This follows action already taken in a number of areas relevant to this report by :
- requiring and receiving from Railtrack information about its plans to provide adequate capacity for freight;
- applying and increasing pressure on Railtrack in relation to the rising trend of broken rails;
- auditing and monitoring Railtrack's compliance with its national track quality improvement programme; and
- taking enforcement action in relation to the provision of capacity studies and freight routing strategies on the West Coast main line.
Commenting on Railtracks under-delivery in the current control period, theRegulator warned that in his December 1999 document giving provisional conclusions as part of the periodic review of Railtrack's access charges he would be announcing what action he intended to take. "I will also set out with greater precision what Railtrack is expected to deliver in the next charges control period," he said.
Mr Winsor also complained that in certain key respects Railtrack's network licence was not fit for purpose. It was granted in March 1994 on the assumption that the company would remain in the public sector, with its directors appointed by and directly accountable to the Secretary of State. When Railtrack was privatised it remained substantially the same licence, and no appreciable change was made. The inherent shortcomings would be remedied.
"It is my intention to strengthen Railtrack's public accountability by amending its network licence, using the procedures in the Railways Act 1993. By making the improvements which this document outlines, the company will have greater clarity, stability and predictability in regulation. It will know far better what is expected of it, and so will its customers and those who rely on it. And it will know these things in advance and so be able to plan its business with confidence. By improving regulation in this way, we enhance its effectiveness and so facilitate the achievement of a better railway.
"I am therefore today announcing the commencement of my first use of the licence modification procedure. My objective is to amend Railtrack's network licence to include three new conditions concerning establishing:
- a reliable and comprehensive asset database which covers all of Railtrack's network and the condition of its assets;
- an efficient and effective regime for monitoring and reporting on the state of Railtrack's assets; and
- a binding code of practice concerning Railtrack's dealings with its dependent customers.
"The steps which I have already taken, together with the criticisms which the company has faced and the measures which I have today announced, should be enough for the company now to improve significantly on its care, maintenance and improvement of the network.
"I want and expect Railtrack to respond positively and constructively to these initiatives. If I am not satisfied with the company's response and its performance, I will not shrink from justified and proportionate use of the powers available to me. Railtrack now has the opportunity to demonstrate urgently and beyond doubt that it takes its public interest responsibilities every bit as seriously as the public which it was established to serve".
Copies of today's document Railtrack's Stewardship of the Network and the associated document, Railtrack's performance targets: statement from the Rail Regulator are available from the Library, Office of the Rail Regulator, 1 Waterhouse Square, 138-142 Holborn, London EC1N 2TQ. Tel: 0207 282 2001; Fax: 0207 282 2045; e-mail : rail.library@orr.gsi.gov.uk/
Copyright © 2002 Office of the Rail Regulator
