Skimming through Guardian Online yesterday, I came across this doom-and-gloom article about rail franchise holders going cap-in-hand to Geoff Hoon, waving the threat of service cuts if the Department for Transport (DfT) doesn’t show some ‘flexibility’ (for which read slashing) in the premium payments that it will be demanding from many of them in the next financial year. This has come about as a result of falling growth in passenger numbers – note falling growth, not falling numbers – due to economic circumstances pertaining.
No-one is expecting the franchises in question to cease to be profitable (only the most lucrative routes have to pay premiums – others receive subsidies): simply that the profit margins will be a bit less comfortable than their holders bargained for. Given this, my advice to Hoon would be to wave an offer back at the franchisees – if you don’t want to pay up, hand in the keys and a new National Rail will run the services, keeping all the profit for re-investment in the railways.
But this is all as an aside. What really caught my eye was the footnote to the article, headed:
Go further in Serbia
What could this possibly have to do with the UK’s railways, wondered the Animal? Well, reading on… (more…)