Today’s shock news is that Network Rail has received a record fine of £14 million in respect of the issues surrounding the engineering overruns over the New Year period. Critics have circled on the authority responsible for issuing the fine, the Office of Rail Regulation, which they say has no point.
The money levied against Network Rail means the organisation now has £14 million less to spend on railway improvements as the money transfers direct to the Treasury. It is a not-for-dividend company and all of the profits that the company makes are re-invested into the railway network for improvments.
This means the Office of Rail Regulation is effectively fining the tax payer who funded the improvements in the first place by way of Network Rail funding. Passenger Focus said it was “fining passengers twice.” We have to agree, this is a senseless waste of public money intended for the improvement of the railways.
The Office of Rail Regulation has also cast doubt over its confidence in Network Rail’s ability to meet the target of December 2008 for the West Coast Mainline Route Modernisation programme to be completed by and is seeking assurances from Network Rail that there will be no issues surrounding this later on.
The current work at Rugby is two weeks behind schedule and there have been indications in a BBC News report that there are going to have to be many more closures of the main route from and to the North and Scotland through Rugby in order to get the project back on track.
This includes a large project over Easter which has already been announced but, still further, there will be closures on bank holidays and it has now also chosen thirteen weekends over summer where passengers and freight operators will be finding lengthier routes for their money.
We are therefore left wondering what happens if the project doesn’t get completed on time. Hopefully there won’t be anymore ludicrous fines levied on Network Rail (passengers and taxpayers). However, Virgin plan to vastly increase their service provision on the West Coast Mainline from December 2008 with their marketing campaign to launch in November.
Come on Network Rail, show us you can run a railway. Fines won’t solve a thing. Instead of negative measures designed to “send a clear message”, the Office of Rail Regulation should have a more understanding approach and get involved in the railways a bit more when it matters – such as the First Great Western debacle.