RoSCos - not being nationalised. The Mirror comments

[whole diary]

[grahame]

from The Mirror

A really important story (IMHO^▸ (in my humble opinion)) from a surprising source

While train passengers have been hit with hikes to ticket prices, it’s been revealed that one of Britain’s big train owners has paid a £150 million dividend, while boss's pay packet reached £1.4 million

Accounts for Porterbrook Leasing showed boss Mary Grant's pay packet jumped by £200,000 to just under £1.4million

One of Britain’s big train owners has paid a £150 million dividend - while millions of passengers are forced to swallow fare hikes.

Porterbrook is among a small group of firms that rake in money from leasing carriages to train operating companies.

and

Accounts show Porterbrook Leasing handed its parent company £150million for last year, on top of £285million the prior year.

This company - Porterbrook Holdings - then in turn dished out another £80million to its shareholders, which include a Canadian investment fund, German insurance giant Allianz and French energy heavyweight EDF.

But while they enjoyed another round of bumper payouts, passengers had to endure higher ticket prices, cancellations and delays.

The accounts for Porterbrook Leasing also showed the pay packet to its boss - believed to be chief executive Mary Grant - jumped by £200,000 to just under £1.4million last year.

Ms Grant, 54, is a farmer’s daughter from Biggar in the Scottish borders who started her career as a trainee wiping tables at Welcome Break’s South Mimms services.

While Labour has vowed to renationalise most of the rail network, it is leaving rolling stock companies - also known as RoSCos - in private hands because of the huge potential cost to the taxpayer in taking them back under public ownership. Aslef, the train drivers’ trade union, said: ‘These new figures are shocking, but not surprising.

“The privatisation of the RoSCos, the rolling stock companies, by John Major in 1994 was the most egregious example of all the Tories’ privatisations.

“The new Labour government is doing a great job bringing the passenger companies back into public ownership.

Now, though, the government must turn its attention to the freight companies, and the RoSCos, which are turning the taxpayer over big time. We have to get their snouts out of the public trough.”

The £150million dividend was more than Porterbrook Leasing generated in profit last year - which slumped from £282.7million to £144.2million. The accounts flagged higher costs of maintenance and greater depreciation. Revenues fell from £382.8million to £372.4million.

No surprises there in the story itself.  A very interesting discussion on this very topic during a private networking session on Friday, and why the story has been kept rather quiet.

[Electric train]

The RoSCo's perhaps also fit into the current Labour Government infrastructure investment by the private sector, the  RoSCo's are a long term investor, rolling stock has typical service life of 30 plus years over which time they recoup their investment. 

The change that is needed is the DfT^» (Department for Transport - about) and GBR^▸ (Great British Railways) need to get the specs right for their requirements and for the RoSCo's to take on more of the risk when things like the cracking in the class 800 bogies happen which impact of the quality of the train service provision
 

[grahame]

The RoSCo's perhaps also fit into the current Labour Government infrastructure investment by the private sector ...

Feedback from an excellently informed source, and relating to previous journalistic questions about RoSCos - has been that the journalist in question has been resisted in his enquiries and his plans to use his outlets to bring this more to the public.  And being part of future plans in this way, in spite of what some consider to be obscene profits going overseas, may be the reason for this.

[grahame]

From the TSSA^» (Transport Salaried Staffs' Association - about)

Rail and transport union TSSA has said it is “alarmed at the eye watering profiteering” by a train owning company which leases carriages to companies operating lines up and down the country.

According to the Mirror newspaper Porterbrook paid out a dividend of £150 million last year, much of which went to shareholders at its parent company. At the same time accounts for Porterbrook Leasing also showed the pay packet to its boss jumped by £200,000 to just under £1.4million last year.

The Labour government has so far decided not to bring rolling stock companies – known as Roscos - back into public hands.

Commenting, TSSA General Secretary, Maryam Eslamdoust said: “The alarming and eye watering profiteering demonstrated by these figures show that despite Labour doing the right thing and bringing train companies back under public control, the exploitation of our rail network is set to continue.

“This comes at a time when passengers are really feeling the pinch and are being asked to swallow another fare hike.

“Ministers must now consider the long-term public good and get Roscos and freight back in public hands. Doing so will draw a line under the long years in which the previous Conservative government had little interest in value for money on the railways.”

[Electric train]

The RoSCo's perhaps also fit into the current Labour Government infrastructure investment by the private sector ...

Feedback from an excellently informed source, and relating to previous journalistic questions about RoSCos - has been that the journalist in question has been resisted in his enquiries and his plans to use his outlets to bring this more to the public.  And being part of future plans in this way, in spite of what some consider to be obscene profits going overseas, may be the reason for this.

From the TSSA^» (Transport Salaried Staffs' Association - about)

Rail and transport union TSSA has said it is “alarmed at the eye watering profiteering” by a train owning company which leases carriages to companies operating lines up and down the country.

According to the Mirror newspaper Porterbrook paid out a dividend of £150 million last year, much of which went to shareholders at its parent company. At the same time accounts for Porterbrook Leasing also showed the pay packet to its boss jumped by £200,000 to just under £1.4million last year.

The Labour government has so far decided not to bring rolling stock companies – known as Roscos - back into public hands.

Commenting, TSSA General Secretary, Maryam Eslamdoust said: “The alarming and eye watering profiteering demonstrated by these figures show that despite Labour doing the right thing and bringing train companies back under public control, the exploitation of our rail network is set to continue.

“This comes at a time when passengers are really feeling the pinch and are being asked to swallow another fare hike.

“Ministers must now consider the long-term public good and get Roscos and freight back in public hands. Doing so will draw a line under the long years in which the previous Conservative government had little interest in value for money on the railways.”

As I mentioned in my earlier post, the DfT^» (Department for Transport - about) aka the Government and GBR^▸ (Great British Railways) need to get their procurement right and getting the contracts correct with the ROSCo's