UNITED KINGDOM (PRIVATISATION OF RAILWAYS)

This paper considers the arguments for and against alternative methods of rail privatisation. Chapter 2 discusses the economic characteristics of the railway industry and examines reasons why governments intervene in the rail sector. Chapter 3 examines empirical evidence on economies of scale and the impacts of methods of organisation on the efficiency of the rail industry. Chapter 4 examines the current proposals for organisational and regulatory reform for British Rail in the light of this evidence. Chapter 5 describes current British policy following the 1992 White Paper on rail privatisation. Chapter 6 draws some conclusions as to the best way forward for the British railway industry. Of particular concern is an anticipated loss of network benefits and an escalation in costs due to increased administration activities. Tables are presented of British Rail's performance and financial results, freight tonnage and returns to scale for 13 European railways. For the covering abstract see IRRD 859801.