Railtrack plc

Railtrack gives Rail Regulator investment plans assurances: It should be publicly accountable
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date 26 June 1997
source Railtrack plc
type Press release

Railtrack has given the Rail Regulator an assurance that the company will provide even more information on its investment plans and its delivery along with measurable benchmarks and targets of what the company was achieving.

Chairman Sir Robert Horton told the regulator, John Swift, today, that Railtrack recognised it should be publicly accountable for the delivery of its plans and that there should be powers of enforcement should it fail to deliver "for no very good reason".

Railtrack's proposals included acting "in a timely, economic and efficient manner" to satisfy the reasonable requirements of train operators and funders in respect of the capability of the Network and publishing the criteria to which it had regard in determining its investment programme and its plans for the development of the Network consistent with an integrated transport policy.

The information provided would include projections of future Network quality and capacity requirements, planned modifications to the network and the expected impact on passenger and freight shippers.

Railtrack also proposed to provide train operators and stakeholders with information on the delivery of its plans and development of the Network including works completed in the preceding year and the impact on the capability of the Network, the reasons for any material changes to the programme and more generally progress in developing the network and its use and changes to plan over the previous year.

The Network Management Statement, issued annually, would, in future, incorporate quantified benchmarks and targets of what Railtrack was achieving. They would focus on outputs of the Network and would incorporate the targets for the development of freight, as set out in Railtrack's Ten Point Plan for Freight published earlier this year. Similar targets would be developed for passenger services.

The benchmarks and targets would also include intermediate outputs such as reliability of the Network which would provide insight into the achievement of Railtrack's renewal and replacement programmes.

Railtrack also proposed that its contractual obligations on the maintenance, renewal and enhancement of the Network, depots and stations could be incorporated into its licence. It proposed a new licence condition specifically for the purpose under which it would be obliged to sustain the present capability of the Network other than for any changes agreed under the terms of contracts and approved by the Rail Regulator, and to undertake enhancement investment where train operators and funders were willing to pay.

If the Rail Regulator concluded that Railtrack had failed to comply, he should be able to require the company to take remedial action or to pay appropriate compensation.

Railtrack pointed out that its Network Management Statement envisaged a level of asset related expenditure substantially above that which the Regulator provided for to 2002 and also committed the company to expenditure up to 2006. Railtrack was prepared to be held to these commitments and to the measurable targets for outputs which it undertook to deliver and which to date included a spend of almost £1 billion investment and a 30 per cent reduction in minutes delay across the Network.

Railhub Archive ::: 1997-06-26 RTK-001