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Why calls for rail nationalisation miss the point

Much of what they are proposing is probably a good idea. It's an extension of what's already happening. But currently we are watching one of the already-nationalised train companies actively work towards increasing ticket prices and reducing flexibility. Things will only ever improve if there's a genuine commitment to properly resourcing the network and operating it as a public service. I note there is no mention of reversing the hasty cancellations on HS2.
 
Re-nationalising the railways is cheap, they just have to wait for the contracts to expire and then not renew them, nationalising any other utilities is going to cost. So sadly will reinstating HS2. Currently at the moment the Labour Party seem very reluctant to commit themselves to something that is going to be expensive.
 
An example of the utter failure of a fragmented service. There’s a power cut at Leatherhead today*. It’s a Southern station. However, most people are actually there to get a Southwestern train to Waterloo. However, two Waterloo trains have now gone steaming through the station without stopping. The Southern staff had no idea that was going to happen and no idea if any future Waterloo trains will stop because they could only speak with their Southern controllers. Who neither know nor care about Southwestern trains.


*the station I now have to go from because Dorking has so few trains that stop there these days. But that’s another story
This happens locally all the time but all of the trains are Northern. If a stopping service is cancelled the express services are never made to stop even if this means passengers having to wait over an hour for the next train. It used to happen sometimes but just stopped ages ago. And I don't believe your issue has anything to do with companies not talking to each other because I am pretty sure this kind of decision is made by network rail signallers defining the path for the trains.

What I think it comes down to is targets around punctuality that means it's not in the interests of whatever company to slow a train down even if that benefits customers.
 
And I don't believe your issue has anything to do with companies not talking to each other because I am pretty sure this kind of decision is made by network rail signallers defining the path for the trains.
The specific problem of the Southern staff not knowing what the SouthWestern trains were going to do was definitely a result of the companies not talking to each other. They knew exactly what the Southern trains were doing.
 
The specific problem of the Southern staff not knowing what the SouthWestern trains were going to do was definitely a result of the companies not talking to each other. They knew exactly what the Southern trains were doing.
You may be right but as I say, in our current system I think even if they were the same company it wouldn't necessarily help. There's too much rigid contractual stuff and targets that sound good but aren't really customer focused. But it does sound as though the Labour plan will sweep much of that away.
 
Much of what they are proposing is probably a good idea. It's an extension of what's already happening. But currently we are watching one of the already-nationalised train companies actively work towards increasing ticket prices and reducing flexibility. Things will only ever improve if there's a genuine commitment to properly resourcing the network and operating it as a public service. I note there is no mention of reversing the hasty cancellations on HS2.

I reckon any nationalised TOC will still be expected to show a profit so these practices will likely continue
 
The problem with Nationalisation is whether whoever is at the levers of power want to invest money or not vs all the other things they want to spend on. Privatisation was supposed to fix that but they don’t invest either as they’re only interested in profits.
 
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To some extent it's just a continuation of what was happening already. We need to wait to know a bit more of the detail of how it gets implemented, and particularly what GBR is going to be, exactly.

Nothing will change very quickly.

What I'm most keen to see:

1. Will it involve greater public investment in / subsidy of rail services?
2. Will they manage to grapple with simplifying the fare & ticketing structure (an enormous task)?

Whether services are "nationalised" or not is somewhat independent of these two things.
 
1. Will it involve greater public investment in / subsidy of rail services?
Indeed - although leasing is surely inherently more expensive than owning if you have maintenance in house? All things being equal, of course, like the government-run service being run vaguely efficiently versus cutting out the inefficiencies of lots of separate legal contracts drawn up and interpreted by expensive lawyers plus relatively high private company profits because the contracts largely seem to benefit them.
2. Will they manage to grapple with simplifying the fare & ticketing structure (an enormous task)?
Wouldn't that largely in theory at least be a question of feeding the timetables and relevant weightings (rush hour times and traveller volumes, prices and distances, connecting services, bus services ...) into a computer and pressing 'optimize' to model the results? Impossible for individual companies but surely has to be if nationalized.

At least at heart a magic grandpa policy, though, rather than one from the authoritarian backstabbing twat that's in there now :thumbs:
 
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1. Will it involve greater public investment in / subsidy of rail services?
2. Will they manage to grapple with simplifying the fare & ticketing structure (an enormous task)?

Whether services are "nationalised" or not is somewhat independent of these two things.

Completely Independent of these things, most fares are regulated separately.

Alex
 
Indeed - although leasing is surely inherently more expensive than owning if you have maintenance in house?
I don't know. But as far as I'm aware the plans (at least initially) don't involve nationalising the rolling stock companies. So this will continue to work in the same way.

Wouldn't that largely in theory at least be a question of feeding the timetables and relevant weightings (rush hour times and traveller volumes, prices and distances, connecting services, bus services ...) into a computer and pressing 'optimize' to model the results?

It involves a bunch of essentially political decisions before pressing any mythical "optimise" button. Level of subsidy overall, balance of subsidy between different types of services, priority given to affordable walk-up fares and flexibility, and so on.

These are the same decisions that already apply - the private train companies can't just make up any old fares. I think that over time, they have been allowed to overcomplicate things, but that didn't necessarily have to be the case under the privatised model - there was always fare regulation and it was always up to government how they wanted to apply it and enforce it,
 
Completely Independent of these things, most fares are regulated separately.

Alex

Fare regulation was in fact something that was brought in along with privatisation. Although, you could say fares were effectively "regulated" under BR because ultimately the government could tell BR what to do.

Something of note is that since various operators have become quasi-nationalised, they have effectively become unregulated, or at least, they are no longer regulated by the same rules that the private ones have to follow.

An example of this is LNER - because they are directly controlled by the DfT, if they want to make changes to previously regulated fares they can. I have made a thread about what they are currently doing. The question is what the outcome of that "trial" is deemed to be, and whether it gets used to inform whatever fares re-organisation is carried out by GBR. Again, it's basically a political decision (maximise revenue vs. prioritise flexibility and affordability) and it'll get made by whatever government is in charge of GBR.
 
I don't know. But as far as I'm aware the plans (at least initially) don't involve nationalising the rolling stock companies. So this will continue to work in the same way.
True, which sounds like a mistake to me.
It involves a bunch of essentially political decisions before pressing any mythical "optimise" button. Level of subsidy overall, balance of subsidy between different types of services, priority given to affordable walk-up fares and flexibility, and so on.
Indeed, but you could feed those into the model to try to find the 'optimal' level. That can't be any more complicated than some of the models in software - can't really be far off can it?
These are the same decisions that already apply - the private train companies can't just make up any old fares. I think that over time, they have been allowed to overcomplicate things, but that didn't necessarily have to be the case under the privatised model - there was always fare regulation and it was always up to government how they wanted to apply it and enforce it,
Ah the mythical simple fares under the privatized model. Much simpler to regulate if it's one system with one supplier rather than two dozen private companies each with different rules and policies.
 
AND contracts to sign with the government needing to make it attractive for private companies to take on the contracts. Who by definition need large amounts of finance so there's not actually many competing companies to give us the 'benefits' of competition. And with the contracts often being subcontracted so there are two levels of profit which squeezes out quality and employee wages and conditions.
 
True, which sounds like a mistake to me.

Indeed, but you could feed those into the model to try to find the 'optimal' level. That can't be any more complicated than some of the models in software - can't really be far off can it?

Ah the mythical simple fares under the privatized model. Much simpler to regulate if it's one system with one supplier rather than two dozen private companies each with different rules and policies.
I'm not particularly trying to argue that the privatised model is better. I am pointing out that the political intentions of the government in charge at any time are hugely more significant than the extent to which the system is privatised/nationalised (and it's never a clear binary choice anyway).

TfL is an example of a system that is privatised at operator level but properly managed and regulated as a complete system (including fares).
 
I'm not particularly trying to argue that the privatised model is better. I am pointing out that the political intentions of the government in charge at any time are hugely more significant than the extent to which the system is privatised/nationalised (and it's never a clear binary choice anyway).
Yes fair enough. Although the political intentions here are surely largely financial so having to build in extra profit for companies will reduce the amount that is available for the railways. That and the fragmentation of the model of privatization that we have.
TfL is an example of a system that is privatised at operator level but properly managed and regulated as a complete system (including fares).
Again yes fair enough if a central body can co-ordinate it all.

I'd still argue that the privatized model still adds fat that can be trimmed without affecting service levels or employment conditions. We may or may not differ on this point though :).
 
I'm not particularly trying to argue that the privatised model is better. I am pointing out that the political intentions of the government in charge at any time are hugely more significant than the extent to which the system is privatised/nationalised (and it's never a clear binary choice anyway).

TfL is an example of a system that is privatised at operator level but properly managed and regulated as a complete system (including fares).
No it isn't. As you can see from interference by central government the last few years.
 
Privatisation added numerous extra costs - starting with that of the bidding farce for franchises which equates to millions for bids (often done by profit seeking "national" railways such as the Dutch - Germanse etc - who ended up getting financially burnt Interest within the UK was falling even before this , - just before Covid reached new lows)

Transaction costs - where do you start - BR had a modest legal team dealing with legislative and non - commercial matters --- the great leap into track access rights and false worlds like that introduced very expensive -"essential" legal teams from the city charging eye-watering hourly for the benefit of their expert knowledge. (rolls eyes)

Interface costs - a wide range of options available - where do you start when you break up a structured , comprehensive structure with direct and effective* management into a galaxy of independant and non cohesive companies. Add in legions of contract managers to ensure compliance at all levels , or "protections of interests" - for example over 300 people nationally attributing delays and arguing over who-s fault it is and who should pay (or not) - backed up by lawyers of course , desperate to judge and prove case studies etc.

As some senior railway managers who have lived through the years of turmoil and so on have recently said - privatisation has not destroyed or broken the railway - but a damned close thing.


((*not of course to Daily Mail vox populii and many Tories who labelled BR as "deeply inefficient" and probably much worse - not of course they have proven themselves to be paragons of honesty , efficiency and so on........let alone value for money))
 
I'd still argue that the privatized model still adds fat that can be trimmed without affecting service levels or employment conditions. We may or may not differ on this point though :).
Well, that's just something that can be argued about endlessly, because neither side of the argument can really prove anything.

The fans of privatisation will say that profits are pretty small as a proportion of the overall turnover and that in return for these you get the benefits of commercial incentivisation.

The disbenefits of fragmentation are perhaps clearer to see.

As I've probably said a hundred times already in this thread, I was strongly against rail privatisation when it originally happened, and in particular I was against the way in which it was done. All of these consequences of fragmenting the system were pointed out by those arguing against it back then, and most of them have been proven to be true.

There are all sorts of other ways of structuring a privatised or part privatised railway, some of which might be quite sensible - if they deal with those multiple issues of fragmentation.

It's kind of interesting to look at how things worked in the early days of rail, when there were multiple companies, who mostly each owned their track & infrastructure. For example Railway Clearing House - Wikipedia

It shows that some kind of institution is always needed to co-ordinate the system at a higher level - this is intrinsic to the way railways work. In Europe there are similar institutions, set up to deal with traffic using multiple (originally mainly state owned) systems, such as Intergovernmental Organisation for International Carriage by Rail - Wikipedia
 
No it isn't. As you can see from interference by central government the last few years.
"The underlying services are provided by a mixture of wholly owned subsidiary companies (principally London Underground), by private sector franchisees (the remaining rail services, trams and most buses) and by licensees (some buses, taxis and river services)." says Wikipedia
 
"The underlying services are provided by a mixture of wholly owned subsidiary companies (principally London Underground), by private sector franchisees (the remaining rail services, trams and most buses) and by licensees (some buses, taxis and river services)." says Wikipedia
Utterly irrelevant
 
I shall assume you are just tilting at windmills as usual, unless you can be bothered to explain what point you are trying to make.
More tilting at windbags. As anyone with a quarter of a wit will have gathered, I meant it isn't properly managed and regulated as a complete system.
 
More tilting at windbags. As anyone with a quarter of a wit will have gathered, I meant it isn't properly managed and regulated as a complete system.
You said that central government can interfere with it. Central government can interfere with pretty much any organisation. So what's your point? My point was about the way it's managed and regulated, which is different from the way National Rail is managed and regulated.
 
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