Department of Transport

Passengers up, subsidy down – Watts hails rail privatisation as a winner
_______________________________________________________________

date 8 November 1996
source Department of Transport
type Press release

note 342

A clear trend of higher passenger numbers and lower subsidy costs is
emerging in Britain's newly privatised passenger rail companies, John
Watts, Minister for Railways, Roads and Local Transport claimed
today.

"Rail privatisation is a winner for taxpayers and rail users alike.
Not only are the new private sector passenger train operators
attracting more people onto trains, but they cost the taxpayer far
less. The thirteen services franchised so far will alone save the
taxpayer #2 billion in the initial seven years compared to what old
BR cost. Subsidies in year seven will be one third of the amount
paid in grant to BR last year," Mr Watts said.

"Costs to the taxpayer will fall in every one of the franchises let
so far, and some will end up paying back a premium. Compared to the
last 50 years that is a truly remarkable achievement."

"Private sector railways mean less cost to the public purse and more
passengers on trains. Even critics of rail privatisation are reduced
to claiming its success is merely down to mild weather. They're
simply clutching at leaves on the line. Britain's new railways are
winners because the private sector knows what customers want and is
prepared to deliver. Rail privatisation is a resounding success."

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Railhub Archive ::: 1996-11-08 DoT-001