Rail Regulator responds to Government rail review

6 May 2004
ORR/10/04

The Rail Regulator, Tom Winsor, today formally submitted to the Department for Transport his views on the reforms needed to the railway industry. 

The Regulator's submission contains an analysis of the present regime and how it works, including the system under which he arrived at his decision in December 2003 as to the funding Network Rail should receive for the operation, maintenance and renewal of the network for the period 2004-09.  He rejects the misconceived notion that the regulatory authority has the power to overrule government spending decisions.

In his submission, the Regulator recommends-

  • very careful consideration must be given to any proposals to move safety regulation from HSE to ORR
     
  • legislation should be introduced which requires government to play its full, timely part in decisions about how much it wants to spend on the railway network
     
  • there is no case for central state command and control of a private sector industry
     
  • the Strategic Rail Authority should be brought closer to government and adhere to its statutory remit
     
  • the significant improvements to the contractual and regulatory matrix and the interfaces between track and train which have been recently introduced must be given a chance to work
     
  • there is already a single directing mind - Network Rail - for operational disruption;  there is no need to duplicate or cut across this regime
      

Notes for editors

1.         On 19 January 2004, the Secretary of State for Transport announced to Parliament a government review of the railway industry.  He supplemented that announcement by a statement to Parliament on 9 February 2004.

2.         The Secretary of State has ruled out renationalisation, loss of independence of the regulatory authority, any change to the rights of third parties, weakening the effectiveness of economic regulation or diminishing regulatory protections of private sector investors. 

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