Report says growth is dependent on moderating rising costs
Growth in the rail industry can only be achieved if costs are brought under control according to the McNulty report published today.
The Rail Value for Money Study has called for a more flexible fares policy and greater co-operation between train operators and Network Rail.
The final report puts forward a wide range of recommendations to encourage cost reduction, deliver new efficiencies and mechanisms to drive implementation.
The Study estimates that implementing the recommendations outlined in the report could deliver savings between 拢700m and 拢1bn annually by 2019.
Speaking at the launch of the report, Sir Roy McNulty said: 鈥淎chieving a 30% efficiency improvement by 2019 should be the target for the UK rail industry given the Study鈥檚 findings on the industry鈥檚 costs compared to European railways and other industries.
鈥淎 reduction of this magnitude is achievable, and is essential if passengers and taxpayers are to get the fair deal they deserve from the rail industry.鈥�
The UK rail network is the most costly in Europe with the government paying 拢5bn of the 拢11bn annual costs.
McNulty鈥檚 report, which was commissioned by the previous government, will feed into a white paper expected in the autumn.
No comments yet