Network Rail still responsible for delivery, says Rail Regulator

24 October 2003
ORR/18/03

In relation to Network Rail’s decision announced today that the company intends to take in-house all rail maintenance work from next summer, Tom Winsor, the Rail Regulator, said:

“Network Rail must make significant improvements in the way it manages and organises maintenance work. It must deliver far better network performance, better stewardship and sharply improved efficiency. Its achievements in these respects to date have been far from satisfactory.

“The basis of my draft conclusions in the present access charges review - announced on 17 October 2003 - is that Network Rail can and must deliver major reductions in costs and improvements in efficiency and performance. This includes a significant reduction in unit maintenance costs over five years. My review will provide the funding for the necessary level and quality of maintenance activity to achieve these improvements.

“Network Rail is and remains under an obligation to ensure that the maintenance of the national network is carried out in accordance with best practice, efficiently and economically. That is the position, whether the work is contracted out or done in-house.

“I will be monitoring closely the work which Network Rail does to secure more effective and higher quality maintenance of the railway network.”

Notes for Editors

1. Condition 7 of Network Rail’s network licence requires the company to maintain, renew, replace, improve, enhance and develop the network in accordance with best practice and in a timely, efficient and economical manner so as to meet the reasonable requirements of train operators and funders in respect of the quality and capability of the network, and all this to the greatest extent reasonably practicable having regard to all relevant circumstances including matters of finance.
2. Enforcement of the network licence (other than in matters of consumer protection) is a matter for the Rail Regulator.
3. As he was reaching his draft conclusions on the present access charges review, the Regulator was aware that Network Rail was considering taking its network maintenance work in-house.
4. If the Regulator confirms his draft conclusions in December 2003, Network Rail will be funded to spend £22.7 billion on the operation, maintenance and renewal of the network over the five years 2004-09.

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