And here’s another thought… By William Bowles

24 October 2003

Although the Labour government denies that the takeover of the privatised rail maintenance contracts by the government-owned Network Rail is re-nationalisation, it admits that the reason is the vast savings that will be realised as a result, something like 25% of the current cost. It’s also got to do with the complete balls-up the various contractors have made of the job by virtue of the incredible complexity of integrating sub-contractors and sub-sub-contractors. Most of the major contractors are essentially investment corporations with neither the skills nor the infrastructure to do the work themselves (more ‘hollow’ corporations that I referred to in a previous essay).

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