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Wednesday 17 Dec 2008

NETWORK RAIL RESPONDS TO CONSERVATIVE STATEMENT ON CORPORATE GOVERNANCE

Region & Route:

National

Earlier this week, the Conservative Party outlined its proposals to change Network Rail's corporate governance. Today, Network Rail issued its formal response.

Network Rail welcomes this week’s announcement by the Conservative Party that it has moved move away from advocating a restructuring of the railway industry. In the week when Network Rail successfully introduced a new timetable, offering hundreds more trains and thousands more seats for passengers, it is appropriate that the Conservative Party is not considering wholesale changes to the industry. Network Rail is firmly of the view that stability is vital to allow long-term planning and investment in new and improved railway capacity.

Network Rail’s Members, to whom the company is accountable, comprise passengers, freight users, train operators and others in the rail industry, as well as the general public. The Members are looking at the effectiveness of the membership structure and its potential for development and the Conservatives’ thoughts will undoubtedly be considered as part of this process.

In Network Rail’s view there are three key tests for any proposals about the governance structure. Specifically any changes should:

1. improve safety and performance;
2. drive cost efficiency;
3. help deliver additional railway capacity.