Wednesday, 13 November 2013

DfT bashes the ROSCOs and adds to industry cost

Someone evidently has a sense of humour at Rail Business Intelligence!

The latest issue contains a report of a talk given to the Railway Study Association by DfT's Director Franchising, Pete Wilkinson.

He is recorded as bewailing lease costs for ex BR rolling stock:

"How come the ROSCOs get away with the price of second hand trains? It's got to stop."

Quite so Pete, quite so.

Rather elegantly RBI juxtaposed the whinings of DfT's very own Doctor Evil with a story about Eversholt refinancing £600m of senior debt; which according to CEO Mary Kenny, will allow the ROSCO "to respond to future investment opportunities."

As our American friends might say - do the math!

Such apparent naivety in understanding market value from the official charged with franchising will no doubt do much to gladden the hearts of thinly capitalised equity profiteers everywhere!

No matter.

Meanwhile, as DfT clearly has it in for the ROSCOs (again), expect fleet refurbishment to become more difficult as nervous finance houses price in political risk.

Hammond Eggs - Sauce for the goose

This from the Yorkshire Post:

Shadow Transport Minister Lilian Greenwood said Ministers are so keen to re-privatise the route linking London, Doncaster, Wakefield, Leeds, York and Edinburgh that they redacted a prospectus for the proposed sell-off to make the line seem less successful than it actually is.

Happily Stephen Hammond was able to mount a spirited defence of privatisation:

He claimed Labour's position on the East Coast franchise was driven by “dogma”.