Regulator queries rail track fees
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Your support makes all the difference.THE TIMETABLE for the privatisation of rail services appeared to lengthen yesterday as the Government's finance regime for the railways is set to come under scrutiny, writes Christian Wolmar.
Issuing two consultation papers on how he sees his future role, John Swift QC, the rail regulator who is responsible for ensuring the new structure of the railways is fair to both consumers and operators, casts doubts on the level of charges which have been set for use of the track in the run-up to privatisation.
The Department of Transport announced the track charges earlier this year, but Mr Swift questions whether the way the charges have been calculated is fair. The Government set a high price for the charges to ensure that Railtrack earned a 5.1 per cent rate of return on its assets now and 8 per cent by 1997- 98. He questions whether this is the right way to promote the use of the railways, one of his stated objectives.
Mr Swift, whose role is independent but who, until the end of 1996 must 'take into account' ministerial guidance, said he would be extremely interested' in the Government's response to the consultation papers.
His intervention appears to make it very difficult for the Government to bring about the early privatisation of Railtrack which it hopes to sell before the next election.
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