News - Further vindication of People’s Rail campaign from Transport Select Committee

21 July 2008

The Co-operative Party has hailed today’s report by the Transport Select Committee as further vindication of the ‘People’s Rail’ campaign.

The report states that the Transport Select Committee ‘do not agree…that the governance structure of Network Rail is adequate… Passengers, Government and train operators all have a significant stake in the success of Network Rail. The current system where members are effectively approved by Network Rail’s Board, albeit indirectly, is inadequate.’

This comes after a resolution passed last week by Network Rail’s members at their AGM, in which they voted to establish ‘a governance ‘Review Group’ to consider the effectiveness of the company’s corporate governance practices, with particular reference to the accountability of the Board to its members and of its members to the company’s wider stakeholders.’

Responding to the Transport Select Committee Report, the Chair of the Co-operative Party Parliamentary Group, Sarah McCarthy-Fry MP said:

‘We welcome the fact that the Transport Select Committee has identified governance as an area where Network Rail need to improve. Coming on the back of Network Rail’s AGM, there seems to be a clear consensus that Network Rail needs to be reformed in a manner that gives real power to passengers and the public.’

Lord Foulkes of Cumnock, a Labour and Co-operative peer, will today ask a question in the House of Lords at 14:30 on whether the Government ‘will review Network Rail’s corporate governance.’