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Network Rail is underperforming. This is largely because its Board is not accountable to anyone but itself.

Network Rail was created in 2002 as a response to the failure of Railtrack, which collapsed against the backdrop of its poor safety record. It owns and runs the rail network, as well as being responsible for the UK’s major train stations.

Since it was created, Network Rail has reduced delays and improved safety. Yet it is still a long way from the service that we deserve.

A key concern is Network Rail’s efficiency. The Regulator has shown that Network Rail is underperforming to the tune of £1.1 billion. This works out as 19% of turnover, and is the equivalent of more than 1,000 new carriages for the network each year.

Over New Year, there were engineering overruns, which caused, in the words of the Regulator, ‘a serious and unacceptable disruption to rail users and train operators.’ While this could have occurred in any type of organisation, the way in which Network Rail responded has led us to question whether it really cares about the needs of passengers and the British public.

This incident is just one prominent example of a broader failure to deliver. The Office of Rail Regulation imposed a fine of £14 million for this failure, yet what was the Board’s response?

At a time when we may have expected the executive management to be fighting for their jobs, the Board has instead congratulated them for ‘a good year for their staff and the public.’ Bonuses have flowed to their ‘fat cat’ directors, with their Chief Executive receiving an extra £510,000 on top of his already healthy salary.

The current way that Network Rail is run is failing both passengers and the wider public.

While the company is accountable to a number of ‘public’ members, the Board effectively appoints these. This puts Network Rail’s Board in the unparalleled position of being able to choose the people to whom it is accountable. Many have criticised the unchecked powers of media tycoons such as Conrad Black, but even he wasn’t able to choose his own shareholders.