Colossal market failure

05 November 2013

Frances O’Grady, general secretary of the TUC, says: 'Rail privatisation has been a colossal market failure. Rather than bringing in the improvements and investment its cheerleaders promised, it has succeeded only in pushing up costs and increasing the burden upon the UK taxpayer.

'Twenty years on from the Railways Act we have a system of corporate welfare with train companies reliant upon the public purse to turn a profit. Virtually all of this ends up in shareholders’ pockets, rather than being used to improve services.

'Tragically, the government is refusing to accept that the current model is broken and is recklessly pushing ahead with the re-privatisation of the East Coast main line, despite it thriving as a publicly-owned service. Ministers have learnt nothing from the last 20 years of failure.'

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