By Martin Banks - 30th January 2012
The whole industry has recognised for some time that costs need to come down
Michael Roberts
A conference in parliament this week will be told that Britain's experience in developing Europe's first liberalised passenger rail market "can help inform" rail policy for other EU countries.
The event, organised by the association of train operating companies (ATOC) and the community of European railway and infrastructure companies (CER), will look at how the shake-up in Britain's rail system may provide 'lessons' for member states.
It is expected to be told that the UKexperience of operating in a liberalised rail environment for more than 15 years can play an 'important role' in the European commission's consideration of new legislation on the opening of rail markets.
The conference, 'Britain's rail value for money report - An inspiration for future EU rail policy?', will be held on Wednesday and hosted by UK Socialist MEP Brian Simpson, who chairs parliament's transport committee.
Other speakers include Keir Fitch, deputy head of cabinet of EU commission vice president Siim Kallas, who is responsible for the transport dossier.
The event offers an opportunity to hear from British expert Roy McNulty on the conclusions of his report on UKrail reform and what the implications could be for the commission's forthcoming proposals for the EU rail sector.
Britain is known for having implemented a strict separation between infrastructure and operations in the 1990s.
While there have been considerable successes, the conference will hear that the sector in the UK lacks efficiency which has led to infrastructure costs that are on average 30 per cent higher than those in the rest of Europe.
Speaking ahead of the event, ATOC chief executive Michael Roberts said, "Much has been achieved by Britain's railways since privatisation, such as major growth in ridership, and historic levels of safety, punctuality and passenger satisfaction.
"But the whole industry has recognised for some time that costs need to come down."
He said current barriers to efficiency include the "lack of alignment on objectives and incentives, and too much government involvement in the detail of the industry's affairs".
Roberts said, "The way forward now for railways in Britainis to improve on the UKmodel of liberalisation, not least through reforms which lead to smarter, more output-based franchises."
Further comment comes from CER executive director Libor Lochman, who says the UK experience raised questions that are 'important for all European countries'.
He said, "For example, what steps can be taken to achieve greater cost efficiency? How can one ensure that the incentives of infrastructure managers and operators are effectively aligned so as to improve the efficiency of the rail sector as a whole?"
He added, "The case of Great Britaindemonstrates the need for sufficient flexibility to allow member states to develop national rail sector models that truly deliver."
