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British Rail was the most efficient railway in Europe, destroyed by privatisation • Subsidies have increased 3x in real terms 1993-1994 BRs last full year of operation: £1.6bn 2006-2007: £6.3bn The figures should be even higher as they do not include Network Rails £34bn debt, £41bn in 2016; which is hidden subsidising. • Train fares increased by 117%, 24% in real terms • Massive increase in overcrowding • Older trains – Age of fleet is two years older than when privatised • Less safe – Railtrack poor maintenance, no staff, just the contractors who could do the job cheapest, we don’t care how you do it mentality. Railtrack wasn’t checking the work done. Result was Southall, Ladbrook Grove and Hatfield rail disasters and 2 years of speed restrictions whilst they repaired broken tracks. Somewhat fixed by nationalising on rail infrastructure. Government is forcing the running of more trains with less staff – most notably Driver Only Operation (DOO) on 10 and 12 carriage trains. Rather than a conductor, the driver uses cameras to determine whether it is safe to close doors and proceed. What happens when the cameras are dirty or there is bad weather?? • Less punctual - especially during post-Hatfield Railtrack speed restriction years • Ticket office closures British trains subsidise foreign railways: • Abellio services (East Anglia, Merseyrail , Scotrail) – Dutch Railways (Nederlandse Spoorwegen) ○ Previously ran Northern Rail • Keolis services (Docklands Light Railway, London Midland, Southern, Southeastern) – French Railways (SNCF) o Previously had shareholding in TransPennine services • Arriva services (Chiltern, Cross Country, Grand Central, London Overground, Tyne & Wear, Wales) – German Railways (Deutsche Bahn) • EWS, now DB Cargo UK has 70% of UK Freight market – German Railways (Deutsche Bahn) o 2006, profit was £14m o 2013, profit was £37m • Eurostar and Eurotunnel services in/from the UK – French and Belgium Railways (SNCF and SNCB respectively) • Even when East Coast Mainline services reverted back to government ownership (Directly Operated Railways). Running more services on time, with a higher customer satisfaction than West Coast Mainline operator Virgin whilst returning monies to the public purse (£1/4bn ea yr); the franchise was given to Virgin.. • ROSCO (Inefficient train leasing by banks, rather than owning outright by BR) and freight profit could be invested in the railways • Loss of majority of rail manufacturing (and engineering knowledge) British Rail Engineering Limited (BREL) factories closed: o York o Doncaster o Derby Railway Works Derby Carriage and Wagon Works still open (Bombardier) Metro Cammell closed • Railtrack (LSE: RTK) was sold below value Government believe £1.5bn under value (£2.3bn 2016) Sold for 380p per share on May 20 1996, market capitalisation of £1.9bn Trading at 1768p per share, market capitalisation £8.97bn in Nov ‘98 One must wonder whether the British people are extremely naive or extremely stupid when it comes to privatisation and naiver/stupider still to vote Conservative?? (unless their upper middle class or upper class of course!)