In Association with the Libertarian International
London, Friday, 17th April 2002
For Immediate Use
Contact Details: 020 8286 9563 or 07799 475859
patrick@libertarian.co.uk
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"POTTERS BAR RAILCRASH BURIED REAL RAILTRACK STORY", SAYS FREE MARKET AND CIVIL LIBERTIES THINK TANK
The tragic accident at Potters Bar has diverted attention away from a serious development in the Railtrack saga, says the Libertarian Alliance, the radical free market and civil liberties think tank and pressure group. The wreckage of the accident has buried not merely the bodies of the victims, but uncomfortable truths recently uttered by the new Railtrack Chief Executive.
Libertarian Alliance Transport Spokesman Patrick Crozier says:
"On Friday morning came the clearest evidence yet that the Government has tilted the playing field against the private sector and in favour of its pet project, Network Rail. Railtrack never had chance.
"In interviews published in the Times and RAIL magazine, the new Railtrack Chief Executive, John Armitt, made it clear that Railtrack or any potential successor is going to need billions of pounds extra to bring the network up to modern standards. This was something that the Government refused point blank to do for Railtrack in the days running up to its being placed in administration. So far the Government has denied that there is any need for extra cash.
"John Armitt is an extremely good witness. He has had a successful career in engineering. He is widely admired and he is new to Railtrack. He has no axe to grind. Network Rail, the government's pet project, is keen to hire him as its Chief Executive.
"You might expect that faced with the prospect of a lucrative position with the new CLG (company limited by guarantee) Mr Armitt would take their line that there is no need for extra money. The fact that he has broken ranks and that he has seen the numbers while NR have not, speaks volumes for the network's financial position.
"The Government now has a choice: either it has to massively increase funding for Network Rail or allow it to close lines. This was never a choice it gave Railtrack. The Government has been applying a double standard. It's one rule for the private sector and another rule for Network Rail.
"The dispute over funding is borne out of the convoluted way in which the industry was fragmented. To all intents and purposes Railtrack was dependent on the government for something like 2/3s of its funding. This money was set by the Regulator. He had a duty to make sure that the business was viable. After Hatfield it became clear that if the then rate of funding continued, Railtrack would go bust. The Government claimed that Railtrack was the victim of its own inadequacies. When Railtrack mooted asking the Regulator for an interim review (a way of increasing its funding) the Government threatened with emergency legislation.
"What is now clear is that Railtrack was right and the Government wrong: it did need the money."
Patrick Crozier concludes:
"It is inevitable that media coverage would concentrate on the tragic events at Potters Bar. Ironically he accident has conveniently buried the deeper scandal of he Government's rail policy. If the Government had a shred of decency it would admit that placing Railtrack into Administration was a mistake and immediately return the company to its rightful owners."
ENDS
Note to Editors
(1) Patrick Crozier can be contacted for further comment at 020 8286 9563 or 07799 475859 or by email at patrick@libertarian.co.uk
Extended Contact
Details:
The Libertarian Alliance is Britain’s most radical
free market and civil liberties policy institute. It has
published over 700 articles, pamphlets and books in support
of freedom and against statism in all its forms. These are
freely available at
http:www.libertarian.co.uk
Our postal address is
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Tel: 07956 472 199
Associated Organisations
The Libertarian International - http://www.libertarian.to -
is a sister organisation to the Libertarian Alliance. Its
mission is to coordinate various initiatives in the defence
of individual liberty throughout the world.
Sean Gabb's personal website - http://www.seangabb.co.uk -
contains about 800,000 words of writings on themes
interesting to libertarians and conservatives
Candidlist - http://www.candidlist.com -
owned and maintained by LA Executive member Sean Gabb, it
lists Conservative MPs and candidates according to their
views on European integration. It had a major effect before
the 2001 general election, and remains an important
resource.
Liberalia - http://www.liberalia.com -
maintained by by LA Executive member Christian Michel,
Liberalia publishes in-depth papers in French and English
on libertarianism, anarcho-capitalism and the free market.
It is a prime source of documentation on these issues for
students and scholars.
Libertarian Samizdata - http://www.samizdata.blogspot.com
- works in association with the Libertarian Alliance and
has an ever larger following. Check it out.