Commenting ahead of the announcement by the Secretary of State for Transport Mark Harper, Ed Thomas partner and Head of UK Transport for KPMG said:
“Today’s announcement of a commitment to establish Great British Railways (GBR) as a new “guiding mind” for the sector should be seen as a reassuring step for passengers at a time when rail travel is under the spotlight and needs reforming.
“Whilst the old system delivered some notable successes, in particular strong growth in passenger numbers, its complexity and fragmentation meant that at times the industry could be less than the sum of its parts.
“GBR will act as a “guiding mind”, providing much-needed leadership and the long-term strategies required to deliver on Government objectives such as simplification of the fares and ticketing system and increasing freight traffic on the network. Moving detailed operational decisions a step away from Government will make the industry more agile in responding to changing circumstances and bringing track and train together should mean that major programmes such as the Integrated Rail Plan for the North and Midlands are delivered more cost-effectively than has been the case in the past.
“The new organisation must have the right capabilities and mindset to be effective as a “guiding mind.” The private sector undertakes 80% of railway expenditure in Britain. Therefore GBR should not seek to micro-manage the sector – rather to bring out the best of the supply chain to deliver the right results for Government, taxpayers and passengers.
“There will also continue to be lots of political interest in the railway – both nationally and locally. GBR must be trusted by government to manage its money responsibly and back its decisions with strong, credible evidence. The Strategic Rail Authority, which was established in 1999 to perform a similar task to GBR failed to build this trust and lasted only five years before decision making was brought back closer to Ministers.”