Chris Green
THERE have been two golden eras since 1980 when the rail industry has been at the top of its game.
The first was after the launch of British Rail’s Sectors in 1982-93. The second was in the early years of privatisation in 2000-10. In both cases, winning was allowing professional rail managers to grow income and cut costs with the maximum possible freedom.
It is not chance that the link between these periods lies in a sense of trust between government and industry which freed up the rail industry to deliver.
RAIL issues in the 1980s record Bob Reid creating a culture of freedom for his Sector Directors to innovate and deliver, within a financial envelope agreed with government. He was rewarded beyond his expectations by the enthusiastic, can-do railway culture that this created.
The same can be said for the early years of privatisation in 1996-2010, where initiatives from empowered train companies grew the industry through new investment and a positive policy of expansion and raised standards.
So, why are we suddenly back to such a negative relationship in 2023, where even the smallest changes have to be authorised by the Department for Transport or HM Treasury?
This is a one-dimensional culture with no long-term strategy beyond imposed cost-cutting, regardless of the loss of income, which is leading the industry into stagnation.
I have experienced these wild swings from the inside, and remain convinced that you only get the best out of people when there is a shared purpose - with the freedom to deliver the agreed objectives.
Empowered staff deliver the goods and exceed your expectations. Disempowered staff develop a ‘sullen obedience’ where they stop driving new initiatives and just await orders.
So, a government facing another crisis in rail funding in 2023 has a choice. It can either continue to impose a command-and-control direction over the rail industry which can only lead to decline - or it can work with the industry to harness its energy and knowledge.
I suggest that they would be well advised to adopt Sir Nicholas Ridley’s strategy when he was faced with an equally daunting financial situation in 1983, as Transport Secretary.
He also inherited a culture of imposed cuts and restrictions which had left the industry trapped in subsidy and slow decline. But he was brave enough to abandon the previous command-and-control policy and make an historic blood pact with the newly appointed Chairman of British Rail -Bob Reid.
The pact gave the railways freedom to deliver a unique five-year Rail Financial Plan - but only provided it delivered within the financial ceiling. Failure would be career threatening.
This heralded a new era of delegated responsibilities, which left the DfT focused on future funding and strategy, while Bob Reid
