U.K. - CO-OPERATIVE PARTY LAUNCHES "PEOPLE'S RAIL" CAMPAIGN

The Co-operative Party has launched a ‘People’s Rail’ campaign aimed at improving rail travel for passengers throughout the country. - 19th July 2008

A study published by the Party calculates that if Network Rail was as efficient as the European average, the money saved could buy 1,000 rail coaches every year; reveals that many instances of rail disruption are unnecessary; and demonstrates how the governance of Network Rail is failing passengers and the industry.

Said the report: “In effect, the Board appoints Network Rail’s members. While an independent panel selects the members, this is effectively appointed and remunerated by the Board as well. This puts Network Rail’s Board in the unparalleled position of being able to choose those to whom it is accountable.”

The Party is calling for all people to be allowed to become members of Network Rail; the members should be able to elect representatives to a Member’s Council, which would replace the role currently fulfilled by the existing membership. Industry members could continue to be nominated by their respective interest groups.

The Rail Regulator has commissioned KPMG to advise on whether the corporate governance is fit for purpose and advise on possible changes.

Sarah McCarthy-Fry, Chair of the Co-operative group of MPs, said: “Many people wonder whether the governance of Network Rail is as strong as it should be.

At a time when we may have expected the management to be under serious pressure after their failure over the New Year, the Board’s response has been to reward them with massive bonuses.

Through making organisations accountable to their users and other stakeholders, it has been demonstrated that we can not only strengthen citizenship, but also build services based on the needs of the people they serve.”

The new Chair of the Commons Transport Select Committee, Labour/Co-op MP Louise Ellman, said the pamphlet is “a valuable contribution to the debate about the future of rail”.

She added: “While Network Rail is a great improvement on the disastrous Railtrack, major questions about its accountability remain. The Movement has a great deal of experience in identifying accountable structures and this is highly relevant to the current debate.”