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Monday 11 Jul 2005

NETWORK RAIL RESPONDS TO THE RSSB'S UFTON NERVET REPORT

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National

Network Rail today welcome the Rail Safety & Standards Board had made a start in improving operational performance and cost control…” commented the Public Accounts Committee today as it published its report about the company. The Committee was reporting on a National Audit Office (NAO) report, ‘Network Rail – making a fresh start’, which was published in May 2004 and followed a Public Accounts Committee hearing which also took place during that month. John Armitt, Network Rail’s Chief Executive, said: “The report recognises the progress the company had made in its first 18 months of ownership of the rail network in improving performance and getting costs under control. “Some 14 months later, Network Rail’s progress has accelerated.  Train performance has markedly improved, delays have come down and costs have been cut by hundreds of millions of pounds.  Since the report, Network Rail has launched its long-term financing vehicle – the Debt Issuance Programme, which will to reduce borrowing costs – and has undertaken other huge initiatives, such as taking maintenance in-house, which has delivered performance improvement and reduced costs.” The performance of the company has markedly improved since the time of the NAO report and the Public Accounts Committee’s hearing:

• Network Rail has reduced train delays by 17% from 13.7m minutes a year ago to 11.4m
• The moving annual average for train punctuality now stands at 84.3% (June ’05). A year ago it was 81.2%
• In April, Network Rail reported an operating profit of £455m compared to a loss of £710m last year
• Over 30,000 people now work for the company having taken the decision to bring maintenance in-house. 12 months ago Network Rail consisted of just 15,000 employees

  John Armitt concluded: “We are dealing with the inefficiencies we inherited in October 2002.  We have delivered high levels of sustained investment in the railway, improved  train performance, while reducing costs.  We have set ourselves stringent performance targets and are in line to meet the challenging efficiency target set by the independent rail regulator for the next five years. “All our people are committed to building on the progress that has been made, as we continue our work to rebuild and renew Britain’s railway.”