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Great Western Coffee Shop > All across the Great Western territory > The Wider Picture in the United Kingdom > Delay electric trains, says Network Rail
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Tim
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« Reply #15 on: June 07, 2010, 10:30:48 »
This announcement does raise some interesting questions.  Electrifcation (and the axed station improvement plan)  was going to be funded by NR» (Network Rail - home page) borrowing not the Governemnt.  If the Governemnt is asking NR to axe these things does this mean thatthey have plans to re-nationalsie NR in the future?
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« Reply #16 on: June 07, 2010, 18:30:41 »
Quote from: Tim on June 07, 2010, 10:30:48
This announcement does raise some interesting questions.  Electrifcation (and the axed station improvement plan)  was going to be funded by NR» (Network Rail - home page) borrowing not the Governemnt.  If the Governemnt is asking NR to axe these things does this mean thatthey have plans to re-nationalsie NR in the future?
The Government underwrites Network Rail's borrowing that is it acts as guarantor, also there is a degree of public money to fund some of these projects, in effect NR's debt is a Government debt
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« Reply #17 on: June 08, 2010, 09:10:43 »
Quote from: Electric train on June 07, 2010, 18:30:41
Quote from: Tim on June 07, 2010, 10:30:48
This announcement does raise some interesting questions.  Electrifcation (and the axed station improvement plan)  was going to be funded by NR» (Network Rail - home page) borrowing not the Governemnt.  If the Governemnt is asking NR to axe these things does this mean thatthey have plans to re-nationalsie NR in the future?
The Government underwrites Network Rail's borrowing that is it acts as guarantor, also there is a degree of public money to fund some of these projects, in effect NR's debt is a Government debt

That is what I understood.  So NR borrowing less, means less exposure by the government to NR debt default.  but it is disenginuous of the government to portray it as a spending cut.
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