Clash Over Management of Rail Industry
Tuesday, December 23, 2008 18:58
These days, the competition investigators are set to clash with the government over its management of the rail industry. This highlight the tensions between antitrust agencies and Westminster that are likely to grow during the post-credit crunch fall out.
The Competition Commission has called for the Department for Transport to launch reforms to stop tax-payer-subsidised train companies paying over the odds for rolling stock. The commission will rule that the government-run franchising system for rail rolling stock needs an overhaul as the official conditions imposed on train-leasing companies are stifling competition. Longder frnachise terms are urged to be taken into donsideration, in order to give themarket a greater flexibility to lead to lower prices.
The investigation might potentially has a knock-on influence over the taxpayers, who fund much of the train operating compnies’ annual rolling stock leasing costs.
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