SIGNAL FAILURES
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SOUTH WESTERN Railway services won’t improve immediately after renationalisation on 25 May, but money has already been saved by not franchising the trains again.
Replacing the current contract, held by FirstGroup and MTR of Hong Kong, with a new franchise would have taken years and cost the government and bidders millions of pounds. Renationalisation avoids the palaver. It does involve a complex transition, including mass transfer of staff, but a change of franchisee would have too. And instead of having to maximise profits by the end of a franchise, managers can focus on SWR’s long-term development.