- The UK administration plans to take control of the railway systems.
The fresh British administration intends to partially reclaim control over their railways. Today, Parliament in London is scheduled to cast their votes during the third reading of a Bill related to this matter, proposed by Transport Minister Louise Haigh from the Labour Party. The Bill suggests that the involvement of private companies ceases once existing contracts conclude or contract termination clauses can be applied.
At present, there are 28 separate railway companies operating in the UK, each catering to specific regions. For some time now, passengers have voiced concerns over frequent train cancellations, delays, and expensive ticket fares. Strikes have repeatedly disrupted services. Unions point fingers at these companies for allegedly mistreating their employees, claiming that the profits primarily enrich managers and shareholders.
As part of a second phase, Minister Haigh aims to establish the state-owned entity, Great British Railways. This body will also inherit the responsibilities of Network Rail, a non-profit organization in charge of maintaining the rail network, including the rail track infrastructure.
Interestingly, the British railway system was previously nationalized following World War II. The four major providers were then consolidated into a state-owned company named British Railways. However, under the tenure of Conservative Prime Minister Margaret Thatcher, this state-owned enterprise, British Rail, was privatized and subsequently dismantled.
Parallelly, in Germany, the situation with rail transport is almost reverse. Deutsche Bahn, the market leader, operates as a state-owned company with a stock corporation structure, fully financed by the Federal Republic of Germany. Deutsche Bahn not only manages train services across the nation but also maintains a significant portion of the deteriorating rail track network within Germany.
Due to the increase in train cancellations and extended delays, there have been recurring demands to split the company and separate the network and operations in Germany.
The Government is closely monitoring the situation with the UK's railways, considering the numerous issues raised by passengers and unions. The new Bill, if passed, could see the Government taking a more active role in the rail sector, potentially leading to improved services and greater accountability.
