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Privatisation and franchising of British train operations

Li, CA and Stittle, J (2014) 'Privatisation and franchising of British train operations.' Australian Accounting Review, 24 (1). 53 - 65. ISSN 1035-6908

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Abstract

The Railways Act 1993 privatised the British railways industry resulting in the separation of ownership and control of the railway infrastructure (track, signals and stations) from that of passenger train operations. The Great North Eastern Railway (GNER), a major train operator, was unable to meet its contractual obligations shortly after successfully re-tendering for its second franchise. By referring to the organisational form and structure of the franchising process, this paper discusses the main financial and operational problems that specifically contributed to the collapse of GNER. In particular, the paper argues that the fragmented structure of privatised train operations, the lack of industry coordination and the inherent problems of franchising an essential transport service explain the demise of GNER and have undermined the general objectives of railway privatisation. Overall, the paper highlights that privatisation of train services has failed to deliver both travelling benefits for the public and financial benefits to the state. © 2014 CPA Australia.

Item Type: Article
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Social Sciences > Essex Business School > Essex Accounting Centre
Depositing User: Users 161 not found.
Date Deposited: 11 Nov 2014 12:46
Last Modified: 13 Jan 2020 22:15
URI: http://repository.essex.ac.uk/id/eprint/10946

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