Sunday 28 February 2021

 

< back | business | images | knowledge | library | rail unveiled | home

archive

::: Rail minister challenges industry to cut costs



Railhub Archive
1999-07-30 ORR-001
Office of the Rail Regulator

0

Rail Regulator demands performance from Railtrack


keywords: click to search


Office of the Rail Regulator
ORR



Phrases in [single square brackets] are hyperlinks in the original document

Phrases in [[double square brackets]] are editorial additions or corrections

Phrases in [[[triple square brackets]]] indicate embedded images or graphics in the original document. (These are not usually archived unless they contain significant additional information.)


Office of the Rail Regulator

Rail Regulator demands performance from Railtrack
_______________________________________________________________


date
30 July 1999
source Office of the Rail Regulator
type Press release

note ORR/99/30


Tom Winsor, the Rail Regulator, today demanded that Railtrack honours its obligations to the passenger and the public by making good its shortfall on performance.

In a letter to Railtrack chief executive, Gerald Corbett, the Regulator said he regarded Railtrack's arguments that they should be allowed to make good the shortfall on passenger delay minutes over two years instead of one as "completely unacceptable".

He reminded Mr Corbett that "these published targets are Railtrack's own targets" and, "that as late as January this year you confirmed your commitment to those targets."

He added: "It cannot be right that an important public commitment of that nature by a regulated company should be subjected to amendment or withdrawal at the discretion of the company.

"I therefore confirm my predecessor's earlier decision requiring you to make up the shortfall", he said. Railtrack must achieve the cumulative reduction of 7.5% per year, that is 14.4% over two years by 31 March 2000.



Notes to Editors:

1. In July 1998, Railtrack published targets for reducing delays per passenger train by 7.5% in 1998/99. Subsequently, Railtrack published a target of a further reduction of 7.5% in 1999/2000.

2. The outturn figure for passenger delay minutes for 1998/99 was 2%.

3. The text of the letter to Gerald Corbett is attached.



PRESS ENQUIRIES : ORR PRESS OFFICE - 0171 282 2002/2007/2059
Out of Office Hours - Page 07659 127303



The text of the letter is below

July 1999



Gerald Corbett Esq
Chief Executive
Railtrack PLC
Railtrack House
Euston Square
LONDON
NW1 2EE



RAILTRACK PERFORMANCE TARGETS

1. My predecessor wrote to you on 23 April 1999 saying that he expected Railtrack to catch up on the shortfall against its 1998-99 performance targets for passenger trains within the current year (ie by 31 March 2000). You responded by proposing to catch up the shortfall over three years (ie by 31 March 2002). Chris Bolt said he was not satisfied with this, and reiterated his expectation that you should catch up on the shortfall within one year. You responded on 2 July 1999 committing Railtrack to make good the shortfall as quickly as possible, and saying that you would commit to making up the shortfall over two years (ie by 31 March 2001).

2. I have now reviewed all the papers relating to this subject and concluded that your proposal is completely unacceptable. I remind you that these published targets are Railtrack's own targets. I also remind you that as late as January this year you confirmed your commitment to those targets. It cannot be right that an important public commitment of that nature by a regulated company should be subjected to amendment or withdrawal at the discretion of the company. I therefore confirm my predecessor's earlier decision requiring you to make up the shortfall - a cumulative reduction in minutes delay per passenger train of 7.5% per annum over the two years, ie 14.4% over the two years - by 31 March 2000.

3. I will write to you shortly when I have made my decision on next steps.

4. I am copying this letter to the Deputy Prime Minister, Sir Alastair Morton and Mike Grant and I will be publishing it via the Stock Exchange at 7.30am tomorrow.


TOM WINSOR


Railhub Archive ::: 1999-07-30 ORR-001





Sunday
28




Not logged on
Visitor










173 stories



4 documents





3 documents



5 documents