At last weekends Co-op Party conference there was much
discussion about Jeremy Corbyns first week as labour leader. The Co-op party
historically has been firmly on the moderate wing of the Labour Party loyally supporting
whoever is the leader. There is no doubt however that Corbynism in terms at
least of opening up Labours policy process to new thinking has been warmly
received by co-operators.
One example of that new thinking that was welcomed at
conference was his advocacy of a Peoples Railway. As far back as 2011
Co-operatives UK published a pamphlet by the recent London Mayoral candidate
and all round railway buff Christian Wolmar advocating co-operative ownership
for Britain’s
railways.
The model is what is called in co-op circles
multi-stakeholder meaning that unlike a consumer or a worker co-op there are
different groups represented in the ownership structure. In the case of the
railways the key stakeholders are the government – representing the national
interest in such a crucial piece of infrastructure, railway workers, who keep
it moving and provide the essential service and the rail users those who depend
on and contribute to the service through their fares and season tickets.
It would be superfluous to argue yet again how the present
system is confusing, over complicated and creates unnecessary competition
between providers, thereby driving up costs and fares to extortionate levels.
The question is how we change it and that is clearly the stage that the Jeremy Corbyn proposals have now rreached.
The scope for a people’s railway is huge for example the
Welsh Government are seriously discussing how to bid for the Wales and Borders franchise
to turn it into a not for profit business integrated into a regulated national
Welsh bus service thereby providing an effective Wales wide public transport
system.
A proposal for Rail Cymru, supported by Aslef, the Co-op
party and the Socialist Environment Association written by Professor Paul Salverson
was published in 2012. The irony is of course that the current Wales
and the Borders franchise run by Arriva trains is owned by the Deutsches
Bundesbahn which in turn is owned by the Federal Republic of Germany. So the
take over of this franchise by a not for profit co-op would be a form of
privatisation!
This is the Alice in Wonderland world of rail franchising
the so called radical Scottish Nats gave
the Scot Rail franchise to Abellio or Nederlandse
Spoorwegen the Dutch national rail company! So clearly they are not against
nationalisation as long is its not our nation doing the nationalising!
One of the exciting
things about a co-operative model is the potential for very local micro-franchises
working with Passenger Transport Authorities and local rail partnerships to
create new services. This model would
immediately stop the £200million of public subsidy leaking out of the railways
in profits for shareholders.
Some estimates are
that over a quarter of the total £4billion in public subsidy are the
“fragmentation” costs the transfer payments and duplication costs between the
train operating companies, the rolling stock companies and network rail.
There are also huge
knock on benefits in public procurement and line improvements by having a more
unified approach. More rational planning in electrification programs and
rolling stick procurement could bring substantial cost savings. No wonder
bringing the railways back into public ownership has over 60% popular support a
figure that has increasing over time.
Furthermore the
example of the London North eastern franchise shows that they can be bought
back into public ownership at almost no cost. The Tory commitment to a
privatised railway is a triumph of ideology over common sense.
Anyone who thinks
these ideas are extreme needs to get out more. Christian Wolmars original ideas
where endorsed by the hardly left Andrew, now Lord, Adonis. There is no doubt
in my mind that the original Herbert Morrison model of public ownership did not
give the public or the workers in the state industries any meaningful say in
their operations making privatisation that much easier.
The Tory critics to Jeremy
Corbyn’s peoples railway idea are in fact right it is indeed ideological and it
will certainly be a joy to ride! .
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