MPs attack Network Rail funding
There is no reason why Network Rail should have been set up to receive private sector funding rather than public money, MPs say.
In a new report, the Commons Public Accounts Committee (PAC) attacks the financing package put in place for Network Rail following the demise of Railtrack.
The rail infrastructure company also comes under attack for the level of debt it has accrued – all of which is underwritten by the government, despite the private sector’s involvement.
In total, Network Rail has racked up £21 billion worth of debt, none of which actually appears on the government’s accounts.
The PAC concludes that Network Rail currently pays £30 million more in interest repayments that it would have done if it had been a nationalised body.
“The bottom line for taxpayers is that they are having to provide cover for private lenders for no obvious advantage,” said committee chairman and Tory MP Edward Leigh.
