'Network Rail to hand out ^35m expenses to staff in travel expenses'

[whole diary]

[Chris from Nailsea]

From the Independent:

Commuters struggle with above-inflation hikes while state-backed staff claim train tickets

Network Rail has signalled it is to pay nearly ^35m in train-travel expenses to its staff in 2011-13, around ^1,000 per employee, as passengers suffer massive New Year fare increases.

Senior industry insiders were shocked that the state-backed owner and operator of most of Britain's rail infrastructure had paid out such vast expenses. One said: "That's a huge amount, especially as a good proportion of that 34,000 workforce will be from the old British Rail, so they'll have free travel."

Staff who worked for British Rail before privatisation 20 years ago had rail-pass perks safeguarded as part of the terms of the deal. Some workers employed since then have passes that allow them more limited free travel.

This comes as commuters see big increases in their ticket prices for the 10th consecutive year. The Government has argued that it is only fair that passengers pay for improvements to the railways.

However, rail minister Norman Baker angered many with his comments that the above-inflation rises were "not nearly as expensive as is being presented" once discounted fares such as advance tickets were included.

Rail fares have increased by an average of 3.9 per cent, while the House of Commons transport committee argued that ministers should instead crush the ^4bn a year in state subsidies granted to train companies.

One extraordinary example of the inflation-busting rises is a season ticket from Sevenoaks in Kent to London, which has gone up from ^1,660 to ^3,112 over a decade.

Ultimately, Network Rail receives a chunk of the fare revenue to help fund its ^6bn a year budget, meaning that the taxpayer and those travellers' wallets that are hit by the fare rises will pay for its staff to be reimbursed.

National Rail's figures showed that its staff claimed nearly ^1.9m for rail travel in the 2011-12 financial year. The first 24 weeks of its financial year 2012-13 saw around ^8.2m spent on rail travel which, on the current trajectory, would see close to ^18m paid out this year. More than ^9.5m was spent in hotels in the last financial year, with a further ^4.1m claimed in the first half of 2012-13.

A Network Rail spokesman insisted that the expenses were vital for the smooth running of the business and were not dissimilar to other organisations that are based across the UK^▸ (United Kingdom). He said: "We are a distributed business in Great Britain, which means our staff have to operate in many parts of the country."

[SandTEngineer]

Just to clarify a point.  NR^» (Network Rail - home page) staff (those that still have it) are not allowed to use their staff travel for business (duty) purposes hence rail travel is always a business expense.  Even when cab riding (as I once had to do as part of my duties) a ticket had to be purchased beforehand (a cab pass only giving authority to enter the cab).

Even in retirement (as I am) the staff pass is not valid for business purposes, only leisure travel.

[Tim]

  Even when cab riding (as I once had to do as part of my duties) a ticket had to be purchased beforehand (a cab pass only giving authority to enter the cab).

I didn't realise that.  Surely that is barmy.  the TOCS will be requiring that their own drivers buy tickets next.

[brompton rail]

Do the Independent's journalists pay for their own travel? I imagine that Network Rail's recompense to their employees covers travel from their normal signing on point to locations where they are working. No different from what I claimed (with receipts) and was paid when working for a charity. Non story!

[trainbuff]

It is insane. Many people who work for Network Rail who started after BR^▸ (British Rail(ways)) dont even get PRIV tickets! Yet they keep the railways running. There should be a level playing field here and there is not

[SandTEngineer]

I think its something to do with NR^» (Network Rail - home page) not being part of ATOC^» (Association of Train Operating Companies See - here) (and some other too distant to remember legislation).  Note that NR is a private company and the TOCS are not

[Andrew1939 from West Oxon]

This is just one of the many complications introduced to the rail industry by a privatisation rushed through without thought to the boundless consequent complexities until after the event and resulting in the increased administration costs of running the railways. Of course, Network Rail employees should be reimbursed the costs of travel essential to their work. The nature of the industry is that many rail workers have to travel many miles just to get to their work areas and it makes sense to use the railways for that travel. At least, cost of this travel is just churning around within the rail industry. The main alternative to essential travel would be the use of road transport that would be very much more inefficient in many cases and resulting in extra costs on the rail industry band thus higher fares for ordinary rail users.

[SandTEngineer]

At least, cost of this travel is just churning around within the rail industry. The main alternative to essential travel would be the use of road transport that would be very much more inefficient in many cases and resulting in extra costs on the rail industry band thus higher fares for ordinary rail users.

When I worked for NR^» (Network Rail - home page) the instructions were that road transport is the first choice (using a Pool vehicle).  NR owns a substantial road motor fleet.

[eightf48544]

Slightly at a tangent but on a visit to Liverpool Street IECC^▸ (Integrated Electronic Control Centre) we were told most of signalmen came to work by car!

Interesting thought they don't travel by train and don't see any trains other than as lights on their screen. Too much of a disconnect?

Agee with S&T^▸ (Signalling and Telegraph) re Networkrail road transport most journeys by car you wil usualy see a Networkrail van.

[Electric train]

There are 2 parts to staff travel.

1) For those with BR^▸ (British Rail(ways)) safeguarded travel this allows for "Residential" and "Leisure"   Residential is home to duty (normal place of work) dependant on where you live in the UK^▸ (United Kingdom) free for the first 8 mile in London and the Southeast its 40 miles after that its a 75% discounted season ticket which can include LU, over a certain grade there is no limit to mileage and over a certain grade 1st class (    )  Leisure travel is just that there are a number of free journey a year and 75% on all other tickets, 1st class is different.  For active staff this is a taxable benefit in kind

For non safeguarded staff NR^» (Network Rail - home page) give a 75% refund on annual season ticket there is an upper cap (appox ^2000) and an interest free loan for the balance deducted for the pay packet.  NR do this as part of the remuneration package, as such it is a taxable benefit in kind.

2) For NR business travel rail tickets have to be pre ordered, to buy tickets from a station and claiming back is frown on, this no different to any other business that require its staff to travel; the reason for pre ordering them (NR have ticket machines) is NR only pay the TOC^▸ (Train Operating Company) part of the fare although the ticket shows the public fare.  Some maintenance and other functions pay for "Bearer pass" from TOC's that do them.

It is often asked why NR does not sign up with ATOC^» (Association of Train Operating Companies See - here) and gain travel facilities for its employees, basically they would have to renegotiate track access charges.

[SandTEngineer]

Some maintenance and other functions pay for "Bearer pass" from TOC^▸ (Train Operating Company)'s that do them.

Thats interesting ET.  In my 6 years in NR^» (Network Rail - home page) Maintenance I never caught sight of one of those.  Always had to pay my fare and claim it back, and woe betide if you missed the reclaim deadline

[Electric train]

Some maintenance and other functions pay for "Bearer pass" from TOC^▸ (Train Operating Company)'s that do them.

Thats interesting ET.  In my 6 years in NR^» (Network Rail - home page) Maintenance I never caught sight of one of those.  Always had to pay my fare and claim it back, and woe betide if you missed the reclaim deadline

Not all TOC's do them, there is an annual charge therefore NR managers limit how many and who has them.

The purchase of tickets at ticket offices / machines is discouraged you have to justify why and expenses signed off by senior manager, tickets are booked through your Team Organiser usually they are next day.

[inspector_blakey]

Not a great deal I can add to what's already been posted above, but suffice it to say that travel bill is simply normal business expenses like in any other company: the Independent's article is a complete non-story as far as I'm concerned.

Given that NR^» (Network Rail - home page) is a company that covers the entire nation and has 35,000 employees, that bill doesn't sound too bad for me. Bear in mind that training is often centered on a limited number of locations: signallers for example are all trained at a (reputedly superb) training centre in Leeds. The initial training takes 12 weeks and staff who don't live within commuting distance will clearly need to be accommodated in hotels. Like any other big company with significant buying power in that regard, NR has substantial negotiated discounts on accommodation but it will still be a significant cost to the company.