THE Transport Secretary will return from Shetland to face other, more
chronic, problems. The rail privatisation plans have begun to have a
very bumpy ride. On Monday Mr MacGregor will face the Commons transport
select committee to answer questions about British Rail's more stringent
funding over the next three years, which should be a warm-up exercise
for Commons Question Time, when he will reply to his numerous critics.
With the rail privatisation Bill due to be published in less than a
fortnight, the plans are coming under sustained fire from all directions
-- from senior Tories as well as Opposition MPs. Even Lord Ridley,
notable champion of privatisation, is gunning for the Government: he
regards the privatisation proposals as unworkable and predicts higher
fares, fewer customers, and ramshackle trains. More tellingly, the
doubters also include Sir Bob Reid, impeccable free marketeer, who was
appointed to implement privatisation. He fears that private companies
will put profit before safety and reliability -- something which already
appears to be happening in the run-up to privatisation, as the plans for
cutting down on maintenance workers in Scotland evidently illustrates.
All this poses difficulties for the Government's forthcoming campaign
to win public support for privatisation. So far it has not made an
impressive job of presenting its case. The plans have been modified
repeatedly and the rhetoric sends confusing signals. At the beginning of
this week the Prime Minister talked of ''semi-privatisation''. The next
day the Transport Secretary talked of going ''full steam ahead''. The
Prime Minister's phrase perhaps more accurately reflects the uncertainty
and ambiguity in Government policy. Last year's White Paper envisaged
that only the freight operations would be sold outright, with the
private sector being invited to bid for franchises to operate BR
passenger trains while the infrastructure remained in state ownership.
And now Mr MacGregor, despite his forceful railway metaphors, has said
that in the first year of privatisation only about half a dozen
franchises would be given to the private sector.
This may be preferable to what most people would understand by ''full
steam ahead'', but whatever terminology is used it still looks like a
recipe for confusion. Two very serious objections to the plan have been
raised -- Sir Bob Reid's point about safety, and the concerns about the
effects of separating management of the track from management of the
services. The prospect of competing services running on the same line is
causing a lot of furrowed brows, for it is something that never happened
when the railways were formerly in the private sector and some people
believe that it is totally impracticable. Some of the transport
executives who are potentially interested in bidding for private
franchises insist that they would need more control of the tracks.
Freight users also have their doubts.
The Government's repeated policy modifications could perhaps be
represented as pragmatism. But true pragmatism would go much further and
would pay attention to the objections of those most closely involved. If
Sir Bob Reid, with his unquestionable free market credentials, is
dubious, then is it wise to go even half-steam ahead? On a pragmatic
view it is clear that what the railways most need is adequate
investment. The last thing they need is what one Tory MP has described
as ''a dated political commitment''. Sir Bob also sees the plan as
doctrinaire and has expressed fears that it could cause long-term damage
to the railway network. If Mr Major had the political nerve to abolish
the poll tax he should surely be able to develop a relevant and
confidence-inspiring strategy for the railways rather than applying the
Thatcherite nostrums. The privatisation plan looks more like the guard's
van of Thatcherism than the vanguard of progress. In this, just as in
its pits closure proposals, the Government may be running up against the
limits of public opinion. There is no strong desire for further
privatisation of utilities and services, but rather a possibly growing
feeling that the provision of certain basic services should remain a
collective responsibility. At any rate, publication of the White Paper
should provide a significant test of public opinion.
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