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Title: Railways face radical overhaul to give 'better deal for all'
Source: Guardian
URL Source: http://www.guardian.co.uk/uk/2011/m ... railways-face-radical-overhaul
Published: May 20, 2011
Author: Guardian
Post Date: 2011-05-20 10:16:01 by go65
Keywords: None
Views: 56962
Comments: 75

Commuters face the biggest shakeup of the railways since the ignominious Railtrack era after a government-commissioned report called for £1bn in costs to be stripped out of the industry – and for it to give all involved a "better deal".

An overhaul of the fares system was the most eye-catching recommendation in a study by Sir Roy McNulty, former chairman of the Civil Aviation Authority. The report into rail industry costs also outlined changes to slash the £5.2bn state subsidy, including phasing out ticket offices in small stations, removing conductors and giving train operators control of maintenance on some routes.

McNulty said fares in the UK were 30% higher than in France, Holland, Sweden and Switzerland, with operating costs running 40% higher than those countries. "There is a clear imperative to give both farepayers and taxpayers a better deal," McNulty said. "This industry has a serious cost deficiency issue to address. Everyone concerned must be aware that passengers are paying above the odds."

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Begin Trace Mode for Comment # 59.

#1. To: CZ82, Jwpegler, godwinson (#0)

Britian's rail privatization of rail hasn't gone so well.

go65  posted on  2011-05-20   10:17:30 ET  Reply   Untrace   Trace   Private Reply  


#3. To: go65, capitalist eric, CZ82, godwinson (#1)

Britian's rail privatization of rail hasn't gone so well.

Passenger rail is an inflexible, cost prohibitive, and obsolete concept.

Very few, if any, passenger rail systems in the world cover their operating costs, let alone make a profit.

From an Amtrack study (pdf):

When all revenues and expenses for the entire passenger train system are taken into consideration, European Passenger Train Operations operate at a financial loss and consequently require significant Public Subsidies...

For example, DB reports profits of about $1.94 per train mile while the railroad is receiving $36.78 in public funding. When public funding is taken into consideration, DB Train Operations actually cost the German government $34.88 per train mile. Similarly, passenger rail operations in the other five European countries cost their governments between $13.77 to $27.78 per train mile...

jwpegler  posted on  2011-05-20   12:05:00 ET  Reply   Untrace   Trace   Private Reply  


#11. To: jwpegler, go65, capitalist eric, CZ82 (#3)

Very few, if any, passenger rail systems in the world cover their operating costs, let alone make a profit.

You think airport facilities make money?

How much direct profit does the federal highway system generate?

In Germany, the public also funds the autobahn system - it is very expensive because cars have no speed limit the road has to be built from high grade materials unlike American roads which is asphalt tops (faster speed limits wear out roads).

Where do you conservative morons get the notion that for an entity to exist for the greater good it needs to generate a profit?

Why do you want to turn America into Somalia or Haiti? Those are nations that have no infrastructure spending by the govt.

Godwinson  posted on  2011-05-20   13:01:49 ET  Reply   Untrace   Trace   Private Reply  


#16. To: Godwinson (#11)

the greater good

There is no such thing as the "greater good". It's a leftist delusion.

Every government action hurts someone (and usually a whole lot of people) because every single thing the government does is based on force at some fundamental level.

The market creates win-win situations. Buyers, sellers, partners... either all parties perceive a benefit to themselves or the transaction doesn't take place.

And no, I am not a conservative. I am a libertarian and always have been.

jwpegler  posted on  2011-05-20   13:19:33 ET  Reply   Untrace   Trace   Private Reply  


#18. To: jwpegler (#16)

The market creates win-win situations. Buyers, sellers, partners... either all parties perceive a benefit to themselves or the transaction doesn't take place.

That's a lofty ideal that isn't supported by real world experience.

lucysmom  posted on  2011-05-20   13:26:26 ET  Reply   Untrace   Trace   Private Reply  


#20. To: lucysmom, jwpegler (#18)

That's a lofty ideal that isn't supported by real world experience.

he has a point - if countries like China, India, etc. continue to grow their investments in public infrastructure while the U.S. reduces its own, the market will indeed win and those countries will continue to outperform us.

The conservative fallacy is to ignore the fact that we're in a globally competitive market. They'd rather see the U.S. in rapid decline then accept the fact that there is a role for public services.

go65  posted on  2011-05-20   13:29:15 ET  Reply   Untrace   Trace   Private Reply  


#32. To: go65, capitalist eric, CZ82, godwinson (#20) (Edited)

if countries like China, India, etc. continue to grow their investments in public infrastructure

India is not growing its investment in public infrastructure to any great degree. Their infrastructure is a disaster.

Right in the middle of Bangalore (a city of 4 million people, which is one of their primary technology hubs), the main road turns to gravel for about a mile.

The government power companies are so inconsistent, that all outsourcing centers have huge generators and a week's worth of fuel on hand to keep the power on when the government power stations break down.

Yet, India is a growing economic powerhouse. How can this be without massive government infrastructure investment??? The left says that this is impossible, yet it is happening.

Yes, the Chinese government is building shiny new things, and wasting a lot of money doing so.

The right solution is somewhere in between -- functional infrastructure that is cost effective. That means that the private sector has to run the power plants, tele-communications, etc. because governments are simply incapable of doing so.

jwpegler  posted on  2011-05-20   14:01:29 ET  Reply   Untrace   Trace   Private Reply  


#36. To: jwpegler (#32)

India is not growing its investment in public infrastructure to any great degree. Their infrastructure is a disaster.

Sure. The stuff of legends!


Capitalist Eric  posted on  2011-05-20   14:13:07 ET  (3 images) Reply   Untrace   Trace   Private Reply  


#56. To: Capitalist Eric (#36) (Edited)

Yep. That first picture is exactly why Indian corporations have to spend so much money on gas-powered backup generators. They would be out of business if they relied on the government power grid.

jwpegler  posted on  2011-05-20   15:30:47 ET  (1 image) Reply   Untrace   Trace   Private Reply  


#57. To: jwpegler, lucysmom (#56)

That picture of the power pole in India is what unregulated limited govt looks like. yea, stuff will still get done but......

Godwinson  posted on  2011-05-20   15:36:30 ET  Reply   Untrace   Trace   Private Reply  


#59. To: Godwinson (#57) (Edited)

That picture of the power pole in India is what unregulated limited govt looks like

Wrong again Bozo.

Most of the power companies in India are government owned and run through the Ministry of Power, Ministry of Coal and Ministry of New Renewable Energy and administered locally by various Public Sector Undertakings (PSUs)

This is what incompetent government looks like.

People who live in tin hovels in India splice into the power lines themselves so that they can watch TV. Tax payers foot the bill.

Private enterprise needs to serve their customers to stay in business. They can't stay in business with constant blackouts. The government is a monopoly so they get to stay in business through FORCE and without any consideration whatsoever to the customer.

jwpegler  posted on  2011-05-20   16:00:09 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 59.

#60. To: jwpegler (#59)

This is what incompetent government looks like.

That's right. Socialism works in Finland and Germany very well. GOP screws up and then blames the screw up on bog govt they are running.

Godwinson  posted on  2011-05-20 16:02:23 ET  Reply   Untrace   Trace   Private Reply  


#62. To: jwpegler, Goodwinson (#59)

The government is a monopoly so they get to stay in business through FORCE and without any consideration whatsoever to the customer.

And yet there is a large and rapidly growing private sector presence in providing power.

People who live in tin hovels in India splice into the power lines themselves so that they can watch TV. Tax payers foot the bill.

I'm not going to respond to that - it speaks volumes without my comment.

lucysmom  posted on  2011-05-20 18:05:30 ET  Reply   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 59.

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