"EXECUTIVE SUMMARY
(a) privatised rail as a serial shambles creating artificial profits for the franchise holders and hidden costs for the public
Rail privatisation was promoted in the early 1990s with promises of a better, cheaper service for rail users requiring less subsidy by tax payers. Private rail companies would bring in capital and their business expertise which would transform the sector’s performance.
Twenty years later, the privatised rail system requires
billions more in tax payer subsidy each year (p. 24, exhibit 7) and has failed to bring in adequate private investment in track or trains (pp. 24-5) so that average age of rolling stock has actually increased (pp. 25-6, exhibit 9)
Rail privatisation created a situation whereby risk and investment averse private companies positioned themselves as value extractors, thanks to high
public subsidies. Government effectively took the operating risk, covering operating deficits and supplying investment funds. "
That definitely worked, didn't it?