Labour pledges partial rail network renationalisation

[dutchman]

Large parts of the rail network could be taken back into public ownership if Labour wins the general election, Ed Miliband has announced.



The Labour leader said the party would let the public sector challenge private operators to take on the running of rail franchises, arguing it would improve the service for passengers and end the situation where foreign state-owned foreign companies could compete to run trains in the UK without competition from a British equivalent.

The move was announced as Mr Miliband attempted to distance himself from the New Labour era of Tony Blair and Gordon Brown, promising the party would tackle inequality while taking a responsible approach to the nation's finances in a time of continuing pressure on public spending.

Sources said an agreement on the rail policy was "pretty much a done deal" at the party's National Policy Forum (NPF) in Milton Keynes, which is thrashing out the details of plans which could find their way into the party's manifesto next year.

The package has faced resistance from grassroots activists and trade unionists who have been pressing for a return to full re-nationalisation.

In a keynote speech to the NPF, Mr Miliband said the decision to privatise the rail network was based on "dogma" rather than for the benefit of passengers.

He said: "Too often, we know the experience, it put the profits into the private sector and put the risk onto the government.

"We know East Coast has worked in public hands, so on the basis of value for money let's extend that idea and let the public sector challenge to take on new lines.

"Let's end the situation where you can be a European public rail company and run lines, but not if you are a public operator from Britain.

"Let's together set a new course for our railways which will be better for the taxpayer and properly serve passengers."

The measures are expected to include legislation to create a new overarching body - accountable to Parliament - which would deliver a national strategy for the railways.

It would bring together the track operator, Network Rail, and a new passenger rail body, to co-ordinate passenger operations, manage infrastructure and oversee stations and ticketing.

The scheme is intended to end what Labour says has been the fragmentation of the rail system under privatisation while delivering cost savings and a better deal for the passenger.