Rail Regulator comments on Railtrack's interim results

13 November 1997
ORR/97/34

John Swift QC, the Rail Regulator, today commented on Railtrack's Interim Results, noting the reported 38% increase intotal asset-related investment and the renewed commitment by its Chairman, Sir Robert Horton, to Railtrack's major capital investment programme.

Mr Swift said: "This capital investment programme is challenging and far reaching and I expect it to result in an improved rail network for passengers and other users. It is long overdue. But the Interim Results show that it is now underway."

Railtrack's new licence obligations make the company publicly accountable to the Regulator for the delivery of this investment programme. The licence provides the Regulator with the necessary powers of investigation and enforcement should Railtrack fail to deliver its obligations.

Under the new licence arrangements, Railtrack must set out -in the form of specific measures and targets - what its investment programme will mean for users, in terms of improvements to the rail network and reduced delays, and how and when it will be achieved. It will do this through its Investment Criteria (to be published this December) and its Network Management Statement (to be published next March).

Mr Swift said: "I have also noted the Chairman's assessment that, so far this year, operational performance has been maintained at a similar level to last year. I expect Railtrack to deliver further substantial improvements in the reliability of its infrastructure, and improvements in its management processes, to deliver much better performance. I will be looking for clear public commitments - and targets - to this effect in Railtrack's Network Management Statement."

Notes to Editors:

1.       Railtrack's network licence (condition 7) was modified by the Regulator on 26 September to introduce three key changes:

• To establish a new General Duty on Railtrack in respect of the maintenance, renewal and development of the rail network and a series of further detailed enforceable obligations in support of this duty;
• To give the Regulator powers of investigation and enforcement if Railtrack fails to deliver without good reason;
• To establish explicit obligations on Railtrack both to consult with train operators and funders and to meet their reasonable expectations to the greatest extent reasonably practicable.

Railtrack has to publish the Criteria it will adopt to comply with the General Duty by 26 December 1997 and, after consultation with train operators and funders, publish its annual Network Management Statement - the form and period of which has to be approved by the Regulator - by the end of March. A reconciliation statement - setting out delivery against plans - must be published by the end of July each year.

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