Train firms demand new role running rail network
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Train operators will demand an emergency meeting with the Government after the general election amid deepening anxiety over the future of Railtrack and its ability to run the network.
The infrastructure business formally lost its status as a blue-chip company yesterday as it was removed from the FTSE-100 Index, while its shares ended the day another 4 per cent down, confirming a further decline in City confidence.
Senior train company executives are expected to urge the Secretary of State for Transport in the new government to give them far greater involvement in running the network. Stagecoach, National Express and Virgin are all interested in operating the track.
The Strategic Rail Authority, which oversees the system on the Government's behalf, is known to be concerned about Railtrack's ability to raise capital and will be raising their concerns with the new government. The collapse in the share price has dashed any hopes of Railtrack being able to raise new funds by issuing more stock. It could also undermine the company's ability to raise additional debt finance. Railtrack had hoped to issue up to £3bn of bonds this summer or autumn to help plug the £3.6bn "black hole" that has appeared in its finances.
In an interview yesterday, the Prime Minister said that he had ruled out renationalisation of Railtrack, but revealed that he had looked at the possibility in great detail. Tony Blair insisted that while such a move would bring a big cheer, it would "not be in the interests of the travelling public".
He said that such a move would mean the Government would not only be obliged to pay for Railtrack's shares, but also its debts of more than £3bn.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments