... the rest of Franz's post only makes sense if you regard the TOCs as making use of the rail network for free!
This is a real puzzle. I can think of a couple of reasons why Dave would want people to make a completely false assumption but neither of them would flatter him.
I have already said that, in 2012/13, the TOCs, as a group, were able to deal with their operating costs from revenue. Those costs include £2bn paid direct to Network Rail in track access charges. The TOCs did not make use of the rail network for free and to say that my previous post only made sense if they did is rubbish.
So, in 2012/13, the government made available to the railway industry subsidies totalling £5.1bn in relation to franchised passenger services comprising £1.9bn to the TOCs and £3.2 billion to Network Rail. In the event the privatised TOCs, as a group, didn’t need theirs. They were able to finance their business from revenue and had enough left over to pay an extra £1bn to the government as a premium as well as paying company tax on what remained of their profit.. The nationalised Network Rail needed all of its subsidy so the government paid that company £3.2bn although the net cost was £2.2 billion after taking into account the premium received from the TOC’s. The major part of this subsidy was required to pay their £1.5bn financing costs. This might be the equivalent of dividends in a privately owned company, something which left wing socialists denounce with apoplexic rage but wouldn’t greet with a murmur when it appears in the accounts of a nationalised business
The amounts of £2bn paid direct to Network Rail by the TOCs plus the premium which they paid to the government were more than sufficient to cover Network Rail's total operating costs of £2.7bn for the year.
I have no stake in this matter. I am not a railwayman, I am not a member of any political party, and I recognise that a mixed economy is necessary but renationalise the railways, no, no, no. The franchising system needs to be vigorously tweaked but probably not replaced. I do not believe that the passengers, the taxpayer or anyone else would benefit.
Oh, sorry, I forgot about the Unions.
I originally posted in response to a post from tsheldon, aka “tigerman”. I will resist the temptation to respond to his comments regarding the energy industry and cartels.
I believe that we have now driven all other readers of this thread off to find more interesting topics and, as far as I am concerned, the matter is now closed